f 000001 - aeeaeepr.com/es-pr/quienessomos/tarifas/03...income statement fy 2012 fy 2013 fy 2014 fy...

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F1 shall contain projected income statements at present and proposed rates, for a minimum of three [3) years. Both scenarios below assume debt restructuring per the proposed transaction. Current Rates Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Sales GWh 18,112,494,000 18,221,182,000 17,560,901,746 17,280,076,873 17,263,542,667 17,268,325,180 17,317,958,213 17,341,888,230 Fuel & Purchased Power $/kWh 0.22245 $ 0.20715 $ 0.20171 $ 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $ 0.11475 $ Contribution to municipalities (CILT) $/kWh - $ - $ - $ - $ - $ - $ 0.00304 $ 0.00313 $ Special Customer Subsidies & Public Lighting $/kWh - $ - $ - $ - $ - $ - $ 0.01072 $ 0.01107 $ Non-Fuel O&M $/kWh 0.06061 $ 0.06114 $ 0.06248 $ 0.06245 $ 0.06245 $ 0.06245 $ 0.04869 $ 0.04825 $ Securitization Payment $/kWh - Total Including Adjustments - $ - $ - $ - $ - $ 0.03005 $ 0.02838 $ 0.04149 $ Overall Rate $/kWh 0.28306 $ 0.26829 $ 0.26420 $ 0.23692 $ 0.17793 $ 0.18853 $ 0.19980 $ 0.21869 $ Revenue Fuel & Purchased Power (+CILT pre-rate structure change) 4,029,172,223 $ 3,774,452,860 $ 3,542,269,097 $ 3,014,799,705 $ 1,993,610,952 $ 1,658,286,796 $ 1,887,178,307 $ 1,989,916,585 $ Contribution to municipalities (CILT) 52,628,550 54,199,213 Special Customer Subsidies & Public Lighting 185,663,370 191,956,108 Base Rate (Non-CILT & Subsidy) 1,097,768,000 1,114,052,000 1,097,283,000 1,079,120,829 1,078,088,287 1,078,386,949 843,194,555 836,825,556 Other Income - - 18,010,147 31,478,719 38,924,845 38,924,845 38,924,845 38,924,845 Total Revenues 5,126,940,223 4,888,504,860 4,657,562,244 4,125,399,252 3,110,624,084 2,775,598,590 3,007,589,626 3,111,822,306 YoY Growth -5% -5% -11% -25% -11% 8% 3% Operating Expenses Fuel (2,901,815,311) $ (2,603,577,215) $ (2,344,999,982) $ (1,893,857,242) $ (1,078,267,293) $ (763,695,078) $ (1,078,952,737) $ (1,097,301,005) $ Purchased Power (684,147,967) (755,685,831) (807,619,515) (789,314,496) (759,089,846) (828,393,012) (882,777,834) (954,238,566) Performance Improvement - - - - 63,043,392 116,212,842 74,552,264 61,622,987 Total Fuel & Purchased Power Expense (3,585,963,279) (3,359,263,046) (3,152,619,496) (2,683,171,737) (1,774,313,748) (1,475,875,249) (1,887,178,307) (1,989,916,585) Salaries (362,008,056) (350,222,850) (335,242,719) (284,691,984) (283,608,142) (280,360,861) (274,073,600) (270,831,929) Pension & Benefits (216,048,759) (202,011,127) (195,554,701) (153,258,802) (147,257,865) (154,576,960) (152,628,588) (152,559,821) Total Labor Expenses (578,056,815) (552,233,976) (530,797,419) (437,950,786) (430,866,008) (434,937,821) (426,702,188) (423,391,750) Pension Underfunding - - - - (61,320,418) (61,601,671) Unclassified division expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (197,231,073) (199,199,884) Total Other Operating Expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (258,551,491) (260,801,555) Customer Service - - 13,083,333 23,750,000 30,500,000 31,005,000 Procurement - - 37,500,000 55,000,000 55,550,000 56,105,500 Other, Net - - 20,833,333 24,000,000 101,000,000 102,010,000 Total Non-Fuel Performance Improvement - - - - 71,416,667 102,750,000 187,050,000 189,120,500 Bad Debt Expense - - (191,533,358) (58,540,416) (55,739,896) (85,383,767) (93,100,006) (98,505,209) Energy Administration Assessment - - - - (5,800,000) (5,800,000) (5,800,000) (5,800,000) Contribution to municipalities (CILT) (244,265,064) (260,839,406) (249,310,364) (235,261,237) (59,709,663) (51,783,821) (52,628,550) (54,199,213) Special Customer Subsidies & Public Lighting (129,809,613) (123,289,972) (116,694,478) (116,700,980) (183,276,113) (168,312,921) (185,663,370) (191,956,108) Total Other Expenses (374,074,677) (384,129,378) (557,538,200) (410,502,633) (304,525,672) (311,280,508) (337,191,925) (350,460,529) Total Expenses ex-Fuel/PP (829,249,263) (891,643,774) (911,191,865) (840,159,297) (822,267,088) (819,248,764) (835,395,604) (791,334,121) Total Flow Through Expenses (Fuel/PP) (3,960,037,956) (3,620,102,452) (3,518,624,338) (2,918,432,974) (1,834,023,411) (1,527,659,070) (1,887,178,307) (2,044,115,797) Total Expenses (4,789,287,219) (4,511,746,226) (4,429,816,203) (3,758,592,271) (2,656,290,499) (2,346,907,833) (2,722,573,911) (2,835,449,918) EBITDA 337,653,004 376,758,635 227,746,040 366,806,981 454,333,585 428,690,757 285,015,715 276,372,388 DSCR ex-Securitization 0.59 0.63 0.36 0.58 2.01 2.60 2.26 3.32 Depreciation Expense (414,573,000) (344,653,000) (339,493,217) (346,232,659) (350,683,694) (356,900,456) (370,236,933) (384,361,991) Interest / Financing Expense (382,604,297) (399,327,259) (431,021,147) (422,329,769) (202,384,220) (142,301,302) (94,511,267) (84,879,545) Net Income excluding Securitization (459,524,293) (367,221,624) (542,768,324) (401,755,447) (98,734,330) (70,511,000) (179,732,485) (192,869,148) No. CEPR-AP-2015-0001 F 000001

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Page 1: F 000001 - AEEaeepr.com/es-pr/QuienesSomos/Tarifas/03...Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ... 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $

F‐1 shall contain projected income statements at present and proposed rates, for a minimum of three [3) years.Both scenarios below assume debt restructuring per the proposed transaction. 

Current Rates

Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Sales GWh 18,112,494,000 18,221,182,000 17,560,901,746 17,280,076,873 17,263,542,667 17,268,325,180 17,317,958,213 17,341,888,230 Fuel & Purchased Power $/kWh 0.22245$ 0.20715$ 0.20171$ 0.17447$ 0.11548$ 0.09603$ 0.10897$ 0.11475$ Contribution to municipalities (CILT) $/kWh -$ -$ -$ -$ -$ -$ 0.00304$ 0.00313$ Special Customer Subsidies & Public Lighting $/kWh -$ -$ -$ -$ -$ -$ 0.01072$ 0.01107$ Non-Fuel O&M $/kWh 0.06061$ 0.06114$ 0.06248$ 0.06245$ 0.06245$ 0.06245$ 0.04869$ 0.04825$ Securitization Payment $/kWh - Total Including Adjustments -$ -$ -$ -$ -$ 0.03005$ 0.02838$ 0.04149$ Overall Rate $/kWh 0.28306$ 0.26829$ 0.26420$ 0.23692$ 0.17793$ 0.18853$ 0.19980$ 0.21869$

RevenueFuel & Purchased Power (+CILT pre-rate structure change) 4,029,172,223$ 3,774,452,860$ 3,542,269,097$ 3,014,799,705$ 1,993,610,952$ 1,658,286,796$ 1,887,178,307$ 1,989,916,585$ Contribution to municipalities (CILT) 52,628,550 54,199,213 Special Customer Subsidies & Public Lighting 185,663,370 191,956,108 Base Rate (Non-CILT & Subsidy) 1,097,768,000 1,114,052,000 1,097,283,000 1,079,120,829 1,078,088,287 1,078,386,949 843,194,555 836,825,556 Other Income - - 18,010,147 31,478,719 38,924,845 38,924,845 38,924,845 38,924,845

Total Revenues 5,126,940,223 4,888,504,860 4,657,562,244 4,125,399,252 3,110,624,084 2,775,598,590 3,007,589,626 3,111,822,306 YoY Growth -5% -5% -11% -25% -11% 8% 3%

Operating ExpensesFuel (2,901,815,311)$ (2,603,577,215)$ (2,344,999,982)$ (1,893,857,242)$ (1,078,267,293)$ (763,695,078)$ (1,078,952,737)$ (1,097,301,005)$ Purchased Power (684,147,967) (755,685,831) (807,619,515) (789,314,496) (759,089,846) (828,393,012) (882,777,834) (954,238,566) Performance Improvement - - - - 63,043,392 116,212,842 74,552,264 61,622,987

Total Fuel & Purchased Power Expense (3,585,963,279) (3,359,263,046) (3,152,619,496) (2,683,171,737) (1,774,313,748) (1,475,875,249) (1,887,178,307) (1,989,916,585) Salaries (362,008,056) (350,222,850) (335,242,719) (284,691,984) (283,608,142) (280,360,861) (274,073,600) (270,831,929) Pension & Benefits (216,048,759) (202,011,127) (195,554,701) (153,258,802) (147,257,865) (154,576,960) (152,628,588) (152,559,821)

Total Labor Expenses (578,056,815) (552,233,976) (530,797,419) (437,950,786) (430,866,008) (434,937,821) (426,702,188) (423,391,750) Pension Underfunding - - - - (61,320,418) (61,601,671) Unclassified division expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (197,231,073) (199,199,884)

Total Other Operating Expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (258,551,491) (260,801,555) Customer Service - - 13,083,333 23,750,000 30,500,000 31,005,000 Procurement - - 37,500,000 55,000,000 55,550,000 56,105,500 Other, Net - - 20,833,333 24,000,000 101,000,000 102,010,000

Total Non-Fuel Performance Improvement - - - - 71,416,667 102,750,000 187,050,000 189,120,500 Bad Debt Expense - - (191,533,358) (58,540,416) (55,739,896) (85,383,767) (93,100,006) (98,505,209) Energy Administration Assessment - - - - (5,800,000) (5,800,000) (5,800,000) (5,800,000) Contribution to municipalities (CILT) (244,265,064) (260,839,406) (249,310,364) (235,261,237) (59,709,663) (51,783,821) (52,628,550) (54,199,213) Special Customer Subsidies & Public Lighting (129,809,613) (123,289,972) (116,694,478) (116,700,980) (183,276,113) (168,312,921) (185,663,370) (191,956,108)

Total Other Expenses (374,074,677) (384,129,378) (557,538,200) (410,502,633) (304,525,672) (311,280,508) (337,191,925) (350,460,529)

Total Expenses ex-Fuel/PP (829,249,263) (891,643,774) (911,191,865) (840,159,297) (822,267,088) (819,248,764) (835,395,604) (791,334,121) Total Flow Through Expenses (Fuel/PP) (3,960,037,956) (3,620,102,452) (3,518,624,338) (2,918,432,974) (1,834,023,411) (1,527,659,070) (1,887,178,307) (2,044,115,797) Total Expenses (4,789,287,219) (4,511,746,226) (4,429,816,203) (3,758,592,271) (2,656,290,499) (2,346,907,833) (2,722,573,911) (2,835,449,918)

EBITDA 337,653,004 376,758,635 227,746,040 366,806,981 454,333,585 428,690,757 285,015,715 276,372,388 DSCR ex-Securitization 0.59 0.63 0.36 0.58 2.01 2.60 2.26 3.32

Depreciation Expense (414,573,000) (344,653,000) (339,493,217) (346,232,659) (350,683,694) (356,900,456) (370,236,933) (384,361,991) Interest / Financing Expense (382,604,297) (399,327,259) (431,021,147) (422,329,769) (202,384,220) (142,301,302) (94,511,267) (84,879,545)

Net Income excluding Securitization (459,524,293) (367,221,624) (542,768,324) (401,755,447) (98,734,330) (70,511,000) (179,732,485) (192,869,148)

No. CEPR-AP-2015-0001

F 000001

Page 2: F 000001 - AEEaeepr.com/es-pr/QuienesSomos/Tarifas/03...Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ... 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $

FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030

17,456,712,922 17,492,938,058 17,530,604,748 17,566,829,873 17,604,496,562 17,642,163,252 17,681,271,506 17,718,938,195 17,758,046,449 17,797,154,703 17,836,262,957 0.11969$ 0.12293$ 0.12132$ 0.12077$ 0.12408$ 0.12816$ 0.13199$ 0.13168$ 0.13116$ 0.13525$ 0.14083$ 0.00318$ 0.00306$ 0.00307$ 0.00308$ 0.00309$ 0.00310$ 0.00310$ 0.00311$ 0.00312$ 0.00313$ 0.00314$ 0.01123$ 0.01047$ 0.01047$ 0.01048$ 0.01049$ 0.01049$ 0.01050$ 0.01051$ 0.01051$ 0.01052$ 0.01052$ 0.04804$ 0.04892$ 0.04891$ 0.04889$ 0.04887$ 0.04886$ 0.04884$ 0.04883$ 0.04881$ 0.04880$ 0.04878$ 0.03288$ 0.03289$ 0.04405$ 0.04490$ 0.04401$ 0.03957$ 0.03896$ 0.03604$ 0.02954$ 0.03322$ 0.03682$ 0.21501$ 0.21827$ 0.22782$ 0.22812$ 0.23054$ 0.23019$ 0.23340$ 0.23016$ 0.22315$ 0.23092$ 0.24010$

2,089,332,006$ 2,150,449,063$ 2,126,778,167$ 2,121,594,476$ 2,184,440,523$ 2,261,103,516$ 2,333,710,109$ 2,333,147,596$ 2,329,079,078$ 2,407,147,580$ 2,511,945,881$ 55,480,842 53,535,573 53,803,250 54,072,267 54,342,628 54,614,341 54,887,413 55,161,850 55,437,659 55,714,847 55,993,422

196,053,994 183,109,295 183,611,673 184,116,532 184,623,883 185,133,739 185,646,113 186,161,016 186,678,463 187,198,465 187,721,036 838,616,710 855,768,896 857,351,081 858,839,423 860,413,952 861,984,624 863,641,444 865,204,345 866,853,354 868,498,429 870,139,549

38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 3,218,408,396 3,281,787,672 3,260,469,017 3,257,547,543 3,322,745,831 3,401,761,065 3,476,809,924 3,478,599,652 3,476,973,399 3,557,484,166 3,664,724,733

3% 2% -1% 0% 2% 2% 2% 0% 0% 2% 3%

(1,125,068,239)$ (1,158,894,628)$ (1,120,779,381)$ (1,109,509,760)$ (1,145,779,387)$ (1,178,672,833)$ (1,232,206,558)$ (1,221,349,478)$ (1,166,489,981)$ (1,205,508,371)$ (1,271,241,611)$ (1,025,449,111) (1,053,605,717) (1,068,928,261) (1,075,904,812) (1,103,384,458) (1,148,070,015) (1,168,071,856) (1,179,308,543) (1,231,054,976) (1,271,074,064) (1,311,121,815)

61,185,345 62,051,282 62,929,475 63,820,096 64,723,322 65,639,331 66,568,305 67,510,425 68,465,879 69,434,856 70,417,546 (2,089,332,006) (2,150,449,063) (2,126,778,167) (2,121,594,476) (2,184,440,523) (2,261,103,516) (2,333,710,109) (2,333,147,596) (2,329,079,078) (2,407,147,580) (2,511,945,881)

(270,661,637) (273,368,253) (276,101,936) (278,862,955) (281,651,585) (284,468,101) (287,312,782) (290,185,909) (293,087,769) (296,018,646) (298,978,833) (152,180,066) (153,701,867) (155,238,885) (156,791,274) (158,359,187) (159,942,779) (161,542,206) (163,157,629) (164,789,205) (166,437,097) (168,101,468) (422,841,703) (427,070,120) (431,340,821) (435,654,229) (440,010,772) (444,410,879) (448,854,988) (453,343,538) (457,876,973) (462,455,743) (467,080,301)

(63,453,614) (64,088,150) (64,729,032) (65,376,322) (66,030,085) (66,690,386) (67,357,290) (68,030,863) (68,711,172) (69,398,283) (70,092,266) (201,188,383) (203,196,767) (205,225,234) (207,273,987) (209,343,226) (211,433,159) (213,543,990) (215,675,930) (217,829,190) (220,003,981) (222,200,521) (264,641,997) (267,284,917) (269,954,266) (272,650,309) (275,373,312) (278,123,545) (280,901,280) (283,706,793) (286,540,361) (289,402,265) (292,292,787)

31,515,050 32,030,201 32,556,402 33,093,890 33,642,909 34,203,704 34,776,529 35,361,642 35,959,307 36,569,792 37,193,372 56,666,555 57,233,221 57,805,553 58,383,608 58,967,444 59,557,119 60,152,690 60,754,217 61,361,759 61,975,377 62,595,130

103,030,100 104,060,401 105,115,371 106,195,601 107,301,696 108,434,275 109,593,972 110,781,437 111,997,334 113,242,344 114,517,164 191,211,705 193,323,822 195,477,326 197,673,100 199,912,049 202,195,098 204,523,192 206,897,296 209,318,400 211,787,512 214,305,667

(105,675,176) (112,529,243) (103,116,577) (97,159,011) (97,396,469) (105,844,004) (108,384,578) (110,520,610) (108,187,640) (107,579,207) (108,975,960) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000)

(55,480,842) (53,535,573) (53,803,250) (54,072,267) (54,342,628) (54,614,341) (54,887,413) (55,161,850) (55,437,659) (55,714,847) (55,993,422) (196,053,994) (183,109,295) (183,611,673) (184,116,532) (184,623,883) (185,133,739) (185,646,113) (186,161,016) (186,678,463) (187,198,465) (187,721,036) (363,010,012) (354,974,110) (346,331,501) (341,147,810) (342,162,980) (351,392,084) (354,718,103) (357,643,477) (356,103,763) (356,292,520) (358,490,418)

(803,801,165) (802,469,753) (798,346,012) (797,706,981) (803,292,386) (817,117,069) (825,063,767) (832,634,662) (835,765,038) (840,648,168) (847,564,417) (2,144,812,847) (2,203,984,636) (2,180,581,417) (2,175,666,742) (2,238,783,151) (2,315,717,857) (2,388,597,522) (2,388,309,446) (2,384,516,737) (2,462,862,427) (2,567,939,303) (2,948,614,012) (3,006,454,388) (2,978,927,430) (2,973,373,724) (3,042,075,537) (3,132,834,926) (3,213,661,289) (3,220,944,108) (3,220,281,775) (3,303,510,595) (3,415,503,720)

269,794,384 275,333,283 281,541,587 284,173,819 280,670,294 268,926,139 263,148,635 257,655,544 256,691,624 253,973,571 249,221,013 3.00 3.19 3.69 3.80 3.71 2.61 2.47 2.43 2.82 3.17 3.16

(395,524,364) (409,483,474) (423,728,617) (434,664,607) (443,191,625) (453,192,903) (465,519,094) (478,769,926) (492,047,611) (503,260,138) (512,441,653) (76,573,208) (65,748,258) (56,050,164) (52,290,460) (51,194,653) (49,965,519) (47,328,061) (44,371,301) (41,289,788) (38,780,895) (36,732,733)

(202,303,187) (199,898,449) (198,237,193) (202,781,247) (213,715,983) (234,232,282) (249,698,520) (265,485,683) (276,645,776) (288,067,462) (299,953,373)

No. CEPR-AP-2015-0001

F 000002

Page 3: F 000001 - AEEaeepr.com/es-pr/QuienesSomos/Tarifas/03...Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ... 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $

Proposed Rates

Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Sales GWh 18,112,494,000 18,221,182,000 17,560,901,746 17,280,076,873 17,263,542,667 17,268,325,180 17,317,958,213 17,341,888,230 Fuel & Purchased Power $/kWh 0.22245$ 0.20715$ 0.20171$ 0.17447$ 0.11548$ 0.09603$ 0.10897$ 0.11475$ Contribution to municipalities (CILT) $/kWh -$ -$ -$ -$ -$ -$ 0.00304$ 0.00313$ Special Customer Subsidies & Public Lighting $/kWh -$ -$ -$ -$ -$ -$ 0.01072$ 0.01107$ Non-Fuel O&M $/kWh 0.06061$ 0.06114$ 0.06248$ 0.06245$ 0.06245$ 0.07532$ 0.06357$ 0.06790$ Securitization Payment $/kWh - Total Including Adjustments -$ -$ -$ -$ -$ 0.03005$ 0.02838$ 0.04149$ Overall Rate $/kWh 0.28306$ 0.26829$ 0.26420$ 0.23692$ 0.17793$ 0.20140$ 0.21468$ 0.23834$

RevenueFuel & Purchased Power (+CILT pre-rate structure change) 4,029,172,223$ 3,774,452,860$ 3,542,269,097$ 3,014,799,705$ 1,993,610,952$ 1,658,286,796$ 1,887,178,307$ 1,989,916,585$ Contribution to municipalities (CILT) 52,628,550 54,199,213 Special Customer Subsidies & Public Lighting 185,663,370 191,956,108 Base Rate (Non-CILT & Subsidy) 1,097,768,000 1,114,052,000 1,097,283,000 1,079,120,829 1,078,088,287 1,300,643,739 1,100,862,604 1,177,575,458 Other Income - - 18,010,147 31,478,719 38,924,845 38,924,845 38,924,845 38,924,845

Total Revenues 5,126,940,223 4,888,504,860 4,657,562,244 4,125,399,252 3,110,624,084 2,997,855,381 3,265,257,676 3,452,572,208 YoY Growth -5% -5% -11% -25% -4% 9% 6%

Operating ExpensesFuel (2,901,815,311)$ (2,603,577,215)$ (2,344,999,982)$ (1,893,857,242)$ (1,078,267,293)$ (763,695,078)$ (1,078,952,737)$ (1,097,301,005)$ Purchased Power (684,147,967) (755,685,831) (807,619,515) (789,314,496) (759,089,846) (828,393,012) (882,777,834) (954,238,566) Performance Improvement - - - - 63,043,392 116,212,842 74,552,264 61,622,987

Total Fuel & Purchased Power Expense (3,585,963,279) (3,359,263,046) (3,152,619,496) (2,683,171,737) (1,774,313,748) (1,475,875,249) (1,887,178,307) (1,989,916,585) Salaries (362,008,056) (350,222,850) (335,242,719) (284,691,984) (283,608,142) (280,360,861) (274,073,600) (270,831,929) Pension & Benefits (216,048,759) (202,011,127) (195,554,701) (153,258,802) (147,257,865) (154,576,960) (152,628,588) (152,559,821)

Total Labor Expenses (578,056,815) (552,233,976) (530,797,419) (437,950,786) (430,866,008) (434,937,821) (426,702,188) (423,391,750) Pension Underfunding - - - - (61,320,418) (61,601,671) Unclassified division expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (197,231,073) (199,199,884)

Total Other Operating Expenses (251,192,449) (216,119,826) (188,861,088) (226,967,115) (218,001,738) (227,564,256) (258,551,491) (260,801,555) Customer Service - - 13,083,333 23,750,000 30,500,000 31,005,000 Procurement - - 37,500,000 55,000,000 55,550,000 56,105,500 Other, Net - - 20,833,333 24,000,000 101,000,000 102,010,000

Total Non-Fuel Performance Improvement - - - - 71,416,667 102,750,000 187,050,000 189,120,500 Bad Debt Expense - - (191,533,358) (58,540,416) (55,739,896) (85,383,767) (93,100,006) (98,505,209) Energy Administration Assessment - - - - (5,800,000) (5,800,000) (5,800,000) (5,800,000) Contribution to municipalities (CILT) (244,265,064) (260,839,406) (249,310,364) (235,261,237) (59,709,663) (51,783,821) (52,628,550) (54,199,213) Special Customer Subsidies & Public Lighting (129,809,613) (123,289,972) (116,694,478) (116,700,980) (183,276,113) (168,312,921) (185,663,370) (191,956,108)

Total Other Expenses (374,074,677) (384,129,378) (557,538,200) (410,502,633) (304,525,672) (311,280,508) (337,191,925) (350,460,529)

Total Expenses ex-Fuel/PP (829,249,263) (891,643,774) (911,191,865) (840,159,297) (822,267,088) (819,248,764) (835,395,604) (791,334,121) Total Flow Through Expenses (Fuel/PP) (3,960,037,956) (3,620,102,452) (3,518,624,338) (2,918,432,974) (1,834,023,411) (1,527,659,070) (1,887,178,307) (2,044,115,797) Total Expenses (4,789,287,219) (4,511,746,226) (4,429,816,203) (3,758,592,271) (2,656,290,499) (2,346,907,833) (2,722,573,911) (2,835,449,918)

EBITDA 337,653,004 376,758,635 227,746,040 366,806,981 454,333,585 650,947,547 542,683,765 617,122,290 DSCR ex-Securitization 0.59 0.63 0.36 0.58 2.01 3.94 4.29 7.41

Depreciation Expense (414,573,000) (344,653,000) (339,493,217) (346,232,659) (350,683,694) (356,900,456) (370,236,933) (384,361,991) Interest / Financing Expense (382,604,297) (399,327,259) (431,021,147) (422,329,769) (202,384,220) (142,301,302) (94,511,267) (84,879,545)

Net Income excluding Securitization (459,524,293) (367,221,624) (542,768,324) (401,755,447) (98,734,330) 151,745,790 77,935,565 147,880,754

No. CEPR-AP-2015-0001

F 000003

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FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030

17,456,712,922 17,492,938,058 17,530,604,748 17,566,829,873 17,604,496,562 17,642,163,252 17,681,271,506 17,718,938,195 17,758,046,449 17,797,154,703 17,836,262,957 0.11969$ 0.12293$ 0.12132$ 0.12077$ 0.12408$ 0.12816$ 0.13199$ 0.13168$ 0.13116$ 0.13525$ 0.14083$ 0.00318$ 0.00306$ 0.00307$ 0.00308$ 0.00309$ 0.00310$ 0.00310$ 0.00311$ 0.00312$ 0.00313$ 0.00314$ 0.01123$ 0.01047$ 0.01047$ 0.01048$ 0.01049$ 0.01049$ 0.01050$ 0.01051$ 0.01051$ 0.01052$ 0.01052$ 0.07569$ 0.08647$ 0.06898$ 0.05734$ 0.05407$ 0.06616$ 0.06684$ 0.07086$ 0.06634$ 0.06057$ 0.05723$ 0.03288$ 0.03289$ 0.04405$ 0.04490$ 0.04401$ 0.03957$ 0.03896$ 0.03604$ 0.02954$ 0.03322$ 0.03682$ 0.24266$ 0.25582$ 0.24789$ 0.23657$ 0.23574$ 0.24748$ 0.25139$ 0.25219$ 0.24067$ 0.24269$ 0.24855$

2,089,332,006$ 2,150,449,063$ 2,126,778,167$ 2,121,594,476$ 2,184,440,523$ 2,261,103,516$ 2,333,710,109$ 2,333,147,596$ 2,329,079,078$ 2,407,147,580$ 2,511,945,881$ 55,480,842 53,535,573 53,803,250 54,072,267 54,342,628 54,614,341 54,887,413 55,161,850 55,437,659 55,714,847 55,993,422

196,053,994 183,109,295 183,611,673 184,116,532 184,623,883 185,133,739 185,646,113 186,161,016 186,678,463 187,198,465 187,721,036 1,321,252,052 1,512,549,124 1,209,258,890 1,007,212,321 951,817,525 1,167,117,946 1,181,768,182 1,255,564,466 1,177,991,861 1,078,041,218 1,020,845,548

38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 38,924,845 3,701,043,739 3,938,567,900 3,612,376,825 3,405,920,440 3,414,149,403 3,706,894,387 3,794,936,662 3,868,959,774 3,788,111,906 3,767,026,955 3,815,430,731

7% 6% -8% -6% 0% 9% 2% 2% -2% -1% 1%

(1,125,068,239)$ (1,158,894,628)$ (1,120,779,381)$ (1,109,509,760)$ (1,145,779,387)$ (1,178,672,833)$ (1,232,206,558)$ (1,221,349,478)$ (1,166,489,981)$ (1,205,508,371)$ (1,271,241,611)$ (1,025,449,111) (1,053,605,717) (1,068,928,261) (1,075,904,812) (1,103,384,458) (1,148,070,015) (1,168,071,856) (1,179,308,543) (1,231,054,976) (1,271,074,064) (1,311,121,815)

61,185,345 62,051,282 62,929,475 63,820,096 64,723,322 65,639,331 66,568,305 67,510,425 68,465,879 69,434,856 70,417,546 (2,089,332,006) (2,150,449,063) (2,126,778,167) (2,121,594,476) (2,184,440,523) (2,261,103,516) (2,333,710,109) (2,333,147,596) (2,329,079,078) (2,407,147,580) (2,511,945,881)

(270,661,637) (273,368,253) (276,101,936) (278,862,955) (281,651,585) (284,468,101) (287,312,782) (290,185,909) (293,087,769) (296,018,646) (298,978,833) (152,180,066) (153,701,867) (155,238,885) (156,791,274) (158,359,187) (159,942,779) (161,542,206) (163,157,629) (164,789,205) (166,437,097) (168,101,468) (422,841,703) (427,070,120) (431,340,821) (435,654,229) (440,010,772) (444,410,879) (448,854,988) (453,343,538) (457,876,973) (462,455,743) (467,080,301)

(63,453,614) (64,088,150) (64,729,032) (65,376,322) (66,030,085) (66,690,386) (67,357,290) (68,030,863) (68,711,172) (69,398,283) (70,092,266) (201,188,383) (203,196,767) (205,225,234) (207,273,987) (209,343,226) (211,433,159) (213,543,990) (215,675,930) (217,829,190) (220,003,981) (222,200,521) (264,641,997) (267,284,917) (269,954,266) (272,650,309) (275,373,312) (278,123,545) (280,901,280) (283,706,793) (286,540,361) (289,402,265) (292,292,787)

31,515,050 32,030,201 32,556,402 33,093,890 33,642,909 34,203,704 34,776,529 35,361,642 35,959,307 36,569,792 37,193,372 56,666,555 57,233,221 57,805,553 58,383,608 58,967,444 59,557,119 60,152,690 60,754,217 61,361,759 61,975,377 62,595,130

103,030,100 104,060,401 105,115,371 106,195,601 107,301,696 108,434,275 109,593,972 110,781,437 111,997,334 113,242,344 114,517,164 191,211,705 193,323,822 195,477,326 197,673,100 199,912,049 202,195,098 204,523,192 206,897,296 209,318,400 211,787,512 214,305,667

(105,675,176) (112,529,243) (103,116,577) (97,159,011) (97,396,469) (105,844,004) (108,384,578) (110,520,610) (108,187,640) (107,579,207) (108,975,960) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000) (5,800,000)

(55,480,842) (53,535,573) (53,803,250) (54,072,267) (54,342,628) (54,614,341) (54,887,413) (55,161,850) (55,437,659) (55,714,847) (55,993,422) (196,053,994) (183,109,295) (183,611,673) (184,116,532) (184,623,883) (185,133,739) (185,646,113) (186,161,016) (186,678,463) (187,198,465) (187,721,036) (363,010,012) (354,974,110) (346,331,501) (341,147,810) (342,162,980) (351,392,084) (354,718,103) (357,643,477) (356,103,763) (356,292,520) (358,490,418)

(803,801,165) (802,469,753) (798,346,012) (797,706,981) (803,292,386) (817,117,069) (825,063,767) (832,634,662) (835,765,038) (840,648,168) (847,564,417) (2,144,812,847) (2,203,984,636) (2,180,581,417) (2,175,666,742) (2,238,783,151) (2,315,717,857) (2,388,597,522) (2,388,309,446) (2,384,516,737) (2,462,862,427) (2,567,939,303) (2,948,614,012) (3,006,454,388) (2,978,927,430) (2,973,373,724) (3,042,075,537) (3,132,834,926) (3,213,661,289) (3,220,944,108) (3,220,281,775) (3,303,510,595) (3,415,503,720)

752,429,727 932,113,512 633,449,396 432,546,716 372,073,867 574,059,461 581,275,373 648,015,666 567,830,131 463,516,360 399,927,011 8.35 10.82 8.29 5.78 4.92 5.56 5.46 6.10 6.25 5.78 5.07

(395,524,364) (409,483,474) (423,728,617) (434,664,607) (443,191,625) (453,192,903) (465,519,094) (478,769,926) (492,047,611) (503,260,138) (512,441,653) (76,573,208) (65,748,258) (56,050,164) (52,290,460) (51,194,653) (49,965,519) (47,328,061) (44,371,301) (41,289,788) (38,780,895) (36,732,733)

280,332,155 456,881,779 153,670,615 (54,408,350) (122,312,411) 70,901,040 68,428,218 124,874,439 34,492,731 (78,524,673) (149,247,374)

No. CEPR-AP-2015-0001

F 000004

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F‐2 shall contain projected changes in financial position and debt service coverage at present and proposed rates, for a minimum of three [3] yearsBoth scenarios below assume debt restructuring per the proposed transaction. 

Current Rates

Balance Sheet FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

AssetsCash and Equivalents 184,728,854 112,623,928 137,301,077 359,656,715 361,890,136 139,633,346 (118,034,704) (286,728,452) Accounts receivable, excluding CILT 592,816,255 722,279,424 837,599,745 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 Accrued CILT 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 Fuel oil inventory 228,681,218 323,729,656 194,072,598 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 Materials and supplies inventory 194,386,771 197,785,896 196,886,813 183,809,456 160,000,000 160,000,000 160,000,000 160,000,000 Prepayments and other 552 5,020,845 390,781 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002

Total Current Assets 1,869,454,054 2,030,280,153 2,035,091,418 2,265,225,655 2,243,649,620 2,021,392,830 1,763,724,780 1,595,031,032

Non-Current Receivables 89,080,080 103,030,080 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199

Cash held by trustees 337,506,130 369,380,927 328,532,117 625 625 625 625 625 Investments held by trustees 636,635,106 553,601,969 674,395,212 386,178,134 13,437,084 13,437,084 13,437,084 13,437,084 Construction fund & other 296,668,755 83,420,351 325,923,279 185,606,451 97,869,771 97,869,771 97,869,771 97,869,771

Total Restricted Assets 1,270,809,990 1,006,403,248 1,328,850,608 571,785,209 111,307,480 111,307,480 111,307,480 111,307,480

Utility plant, net 6,769,291,863 6,801,281,755 6,795,869,425 6,652,293,234 6,442,033,540 6,421,690,892 6,738,139,079 6,750,838,915

Deferred debits, net 290,829,473 194,652,325 147,739,150 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449

Total Assets 10,289,465,459 10,135,647,562 10,416,509,800 9,747,271,747 9,054,958,288 8,812,358,850 8,871,138,987 8,715,145,075

LiabilitiesShort Term Loan - - - - - - - 172,056,154 Notes Payable to Banks 604,377,149 754,822,674 731,897,568 731,124,914 731,124,914 621,456,177 511,787,440 402,118,703 Accounts payable and accrued liabilities, excluding CILT 351,098,144 618,326,612 901,434,837 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 Accrued CILT liablity 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 Customer deposits, including acrrued interest 14,310,374 14,531,042 15,726,720 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514

Total Current Liabilities 1,638,626,070 2,056,520,731 2,317,899,527 2,202,861,975 2,202,861,975 2,093,193,238 1,983,524,501 2,045,911,918

Current portion of long-term debt 379,974,775 419,646,230 432,280,869 452,118,958 45,955,149 42,635,271 39,499,915 38,494,025 Accrued interest on payable bonds and notes 185,757,238 187,431,681 218,839,280 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 Other current liabilities 51,545,945 39,594,009 60,614,056 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749

Total Current Liabilities from Restricted Assets 617,277,958 646,671,921 711,734,205 705,566,359 299,402,550 296,082,673 292,947,316 291,941,427

Power revenue bonds, net of unamortized debt discount 8,145,758,534 7,890,371,144 8,285,007,831 8,048,536,068 818,084,851 758,985,028 703,169,999 685,263,351 New Issue Capex Financing - - - - - - 411,307,675 404,708,032 Securitized Debt (PREPARC) - - - - 6,846,372,427 6,770,656,463 6,708,301,491 6,519,497,460 Non current portion, accounts payable, and acrrued sick leave 139,903,694 122,355,965 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 Accrued unfunded OPEB 130,712,230 136,049,906 119,174,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 Customer deposit - noncurrent 161,836,863 166,950,166 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958

Total Long-Term Liabilities 8,578,211,319 8,315,727,182 8,687,555,563 8,458,924,801 8,074,846,011 7,940,030,223 8,233,167,898 8,019,857,575

Total Liabilities 10,834,115,348 11,018,919,833 11,717,189,295 11,367,353,136 10,577,110,537 10,329,306,135 10,509,639,716 10,357,710,921

Total Equity (544,649,889) (883,272,272) (1,300,679,496) (1,620,081,388) (1,522,152,249) (1,516,947,285) (1,638,500,729) (1,642,565,846) -5% -9% -12% -17% -17% -17% -18% -19%

Total Liabilities & Equity 10,289,465,459 10,135,647,562 10,416,509,800 9,747,271,747 9,054,958,288 8,812,358,850 8,871,138,987 8,715,145,075

No. CEPR-AP-2015-0001

F 000005

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Proposed Rates

Balance Sheet FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

AssetsCash and Equivalents 184,728,854 112,623,928 137,301,077 359,656,715 361,890,136 361,890,136 361,890,136 361,890,136 Accounts receivable, excluding CILT 592,816,255 722,279,424 837,599,745 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 Accrued CILT 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 Fuel oil inventory 228,681,218 323,729,656 194,072,598 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 Materials and supplies inventory 194,386,771 197,785,896 196,886,813 183,809,456 160,000,000 160,000,000 160,000,000 160,000,000 Prepayments and other 552 5,020,845 390,781 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002

Total Current Assets 1,869,454,054 2,030,280,153 2,035,091,418 2,265,225,655 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620

Non-Current Receivables 89,080,080 103,030,080 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199

Cash held by trustees 337,506,130 369,380,927 328,532,117 625 625 625 625 625 Investments held by trustees 636,635,106 553,601,969 674,395,212 386,178,134 13,437,084 13,437,084 13,437,084 13,437,084 Construction fund & other 296,668,755 83,420,351 325,923,279 185,606,451 97,869,771 97,869,771 97,869,771 97,869,771

Total Restricted Assets 1,270,809,990 1,006,403,248 1,328,850,608 571,785,209 111,307,480 111,307,480 111,307,480 111,307,480

Utility plant, net 6,769,291,863 6,801,281,755 6,795,869,425 6,652,293,234 6,442,033,540 6,421,690,892 6,738,139,079 6,750,838,915

Deferred debits, net 290,829,473 194,652,325 147,739,150 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449

Total Assets 10,289,465,459 10,135,647,562 10,416,509,800 9,747,271,747 9,054,958,288 9,034,615,640 9,351,063,827 9,363,763,662

LiabilitiesShort Term Loan - - - - - - - - Notes Payable to Banks 604,377,149 754,822,674 731,897,568 731,124,914 731,124,914 621,456,177 511,787,440 402,118,703 Accounts payable and accrued liabilities, excluding CILT 351,098,144 618,326,612 901,434,837 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 Accrued CILT liablity 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 Customer deposits, including acrrued interest 14,310,374 14,531,042 15,726,720 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514

Total Current Liabilities 1,638,626,070 2,056,520,731 2,317,899,527 2,202,861,975 2,202,861,975 2,093,193,238 1,983,524,501 1,873,855,764

Current portion of long-term debt 379,974,775 419,646,230 432,280,869 452,118,958 45,955,149 42,635,271 39,499,915 38,494,025 Accrued interest on payable bonds and notes 185,757,238 187,431,681 218,839,280 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 Other current liabilities 51,545,945 39,594,009 60,614,056 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749

Total Current Liabilities from Restricted Assets 617,277,958 646,671,921 711,734,205 705,566,359 299,402,550 296,082,673 292,947,316 291,941,427

Power revenue bonds, net of unamortized debt discount 8,145,758,534 7,890,371,144 8,285,007,831 8,048,536,068 818,084,851 758,985,028 703,169,999 685,263,351 New Issue Capex Financing - - - - - - 411,307,675 404,708,032 Securitized Debt (PREPARC) - - - - 6,846,372,427 6,770,656,463 6,708,301,491 6,519,497,460 Non current portion, accounts payable, and acrrued sick leave 139,903,694 122,355,965 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 Accrued unfunded OPEB 130,712,230 136,049,906 119,174,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 Customer deposit - noncurrent 161,836,863 166,950,166 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958

Total Long-Term Liabilities 8,578,211,319 8,315,727,182 8,687,555,563 8,458,924,801 8,074,846,011 7,940,030,223 8,233,167,898 8,019,857,575

Total Liabilities 10,834,115,348 11,018,919,833 11,717,189,295 11,367,353,136 10,577,110,537 10,329,306,135 10,509,639,716 10,185,654,767

Total Equity (544,649,889) (883,272,272) (1,300,679,496) (1,620,081,388) (1,522,152,249) (1,294,690,495) (1,158,575,889) (821,891,104) -5% -9% -12% -17% -17% -14% -12% -9%

Total Liabilities & Equity 10,289,465,459 10,135,647,562 10,416,509,800 9,747,271,747 9,054,958,288 9,034,615,640 9,351,063,827 9,363,763,662

No. CEPR-AP-2015-0001

F 000006

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FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030

(277,427,293) (272,673,290) (274,935,779) (275,392,248) (269,745,524) (262,285,848) (255,642,586) (255,043,998) (255,098,436) (248,257,711) (239,052,797) 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000

3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 1,604,332,191 1,609,086,194 1,606,823,705 1,606,367,236 1,612,013,960 1,619,473,636 1,626,116,899 1,626,715,486 1,626,661,048 1,633,501,773 1,642,706,687

108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199

625 625 625 625 625 625 625 625 625 625 625 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771

111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480

6,851,468,937 7,094,367,047 7,151,956,869 7,075,039,069 6,928,337,220 6,946,003,865 6,955,353,820 7,018,386,685 7,003,268,407 6,883,361,502 6,692,019,519

149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449

8,825,076,256 9,072,728,369 9,128,055,701 9,050,681,432 8,909,626,308 8,934,752,629 8,950,745,846 9,014,377,299 8,999,204,583 8,886,138,403 8,704,001,335

663,992,655 1,325,526,887 1,675,172,206 1,823,088,634 1,920,138,931 2,232,731,929 2,557,501,929 2,948,460,639 3,259,544,707 3,475,928,221 3,635,839,134 255,893,720 73,112,491 (0) (0) (0) (0) (0) (0) (0) (0) (0) 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403

15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 2,391,623,436 2,870,376,439 3,146,909,267 3,294,825,695 3,391,875,992 3,704,468,990 4,029,238,990 4,420,197,700 4,731,281,769 4,947,665,283 5,107,576,195

37,082,059 35,809,504 34,994,243 34,223,703 33,374,506 31,013,551 28,365,300 25,594,775 23,500,679 21,871,468 20,232,957 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652

42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 290,529,461 289,256,906 288,441,645 287,671,105 286,821,908 284,460,953 281,812,702 279,042,177 276,948,081 275,318,870 273,680,359

660,127,793 637,474,014 622,960,885 609,243,883 594,126,645 552,097,359 504,953,707 455,633,338 418,354,638 389,351,740 360,183,273 397,778,406 390,502,299 382,862,387 374,840,479 366,417,476 357,573,323 348,286,962 338,536,282 328,298,069 317,547,946 306,260,316

6,401,213,982 6,289,193,873 6,019,616,059 5,702,373,346 5,378,739,281 5,098,152,421 4,819,650,737 4,566,395,821 4,342,476,073 4,071,950,040 3,733,046,667 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958

7,869,508,913 7,727,558,918 7,435,828,064 7,096,846,440 6,749,672,134 6,418,211,835 6,083,280,138 5,770,954,173 5,499,517,512 5,189,238,458 4,809,878,988

10,551,661,810 10,887,192,264 10,871,178,975 10,679,343,240 10,428,370,034 10,407,141,777 10,394,331,831 10,470,194,050 10,507,747,362 10,412,222,611 10,191,135,542

(1,726,585,554) (1,814,463,895) (1,743,123,274) (1,628,661,808) (1,518,743,726) (1,472,389,148) (1,443,585,984) (1,455,816,751) (1,508,542,779) (1,526,084,208) (1,487,134,208) -20% -20% -19% -18% -17% -16% -16% -16% -17% -17% -17%

8,825,076,256 9,072,728,369 9,128,055,701 9,050,681,432 8,909,626,308 8,934,752,629 8,950,745,846 9,014,377,299 8,999,204,583 8,886,138,403 8,704,001,335

No. CEPR-AP-2015-0001

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FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030

361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 361,890,136 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 928,812,332 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 120,313,747 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000

3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 3,793,002 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620 2,243,649,620

108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199 108,959,199

625 625 625 625 625 625 625 625 625 625 625 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 13,437,084 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771 97,869,771

111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480 111,307,480

6,851,468,937 7,094,367,047 7,151,956,869 7,075,039,069 6,928,337,220 6,946,003,865 6,955,353,820 7,018,386,685 7,003,268,407 6,883,361,502 6,692,019,519

149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449 149,008,449

9,464,393,685 9,707,291,795 9,764,881,617 9,687,963,817 9,541,261,968 9,558,928,613 9,568,278,568 9,631,311,433 9,616,193,155 9,496,286,250 9,304,944,267

- - - - - - - - - - - 255,893,720 73,112,491 (0) (0) (0) (0) (0) (0) (0) (0) (0) 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 787,202,143 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403 668,840,403

15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 15,694,514 1,727,630,781 1,544,849,553 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061 1,471,737,061

37,082,059 35,809,504 34,994,243 34,223,703 33,374,506 31,013,551 28,365,300 25,594,775 23,500,679 21,871,468 20,232,957 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652 211,192,652

42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 42,254,749 290,529,461 289,256,906 288,441,645 287,671,105 286,821,908 284,460,953 281,812,702 279,042,177 276,948,081 275,318,870 273,680,359

660,127,793 637,474,014 622,960,885 609,243,883 594,126,645 552,097,359 504,953,707 455,633,338 418,354,638 389,351,740 360,183,273 397,778,406 390,502,299 382,862,387 374,840,479 366,417,476 357,573,323 348,286,962 338,536,282 328,298,069 317,547,946 306,260,316

6,401,213,982 6,289,193,873 6,019,616,059 5,702,373,346 5,378,739,281 5,098,152,421 4,819,650,737 4,566,395,821 4,342,476,073 4,071,950,040 3,733,046,667 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 114,517,998 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 127,015,776 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958 168,854,958

7,869,508,913 7,727,558,918 7,435,828,064 7,096,846,440 6,749,672,134 6,418,211,835 6,083,280,138 5,770,954,173 5,499,517,512 5,189,238,458 4,809,878,988

9,887,669,155 9,561,665,377 9,196,006,770 8,856,254,606 8,508,231,103 8,174,409,848 7,836,829,902 7,521,733,411 7,248,202,654 6,936,294,390 6,555,296,408

(423,275,470) 145,626,418 568,874,847 831,709,211 1,033,030,865 1,384,518,765 1,731,448,666 2,109,578,022 2,367,990,500 2,559,991,860 2,749,647,859 -4% 2% 6% 9% 11% 14% 18% 22% 25% 27% 30%

9,464,393,685 9,707,291,795 9,764,881,617 9,687,963,817 9,541,261,968 9,558,928,613 9,568,278,568 9,631,311,433 9,616,193,155 9,496,286,250 9,304,944,267

No. CEPR-AP-2015-0001

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Directorate BI BI Description PlanArea PlanSubArea TypEofBI PID ProjectDescriptionTransmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion New Tie Breaker 38 kV Cayey TCGeneración 476 Improvement Land & Builddings ‐ Electrict System General Land and Building Building Improvement New Physical Plant RehabilitationTransmisión y Distribución 553 Equipment Communication ‐ Transmission and Distribution Office Furniture and Equipment Other Equipment Comunication 14437 Communications Equipment ‐ Transmission and DistribucionEjecutivo 468 Improvement to Warehouses General Land and Building Building Improvement 18593 Construction of general warehouse perimeter fence Ejecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 13972 Equipment for Maintenace WorkshopGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Acquisition of Equipment for operation and security of unitsGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Loading Platform for DEMI PlantTransmisión y Distribución 514 Office Equipment  ‐ Transmission and Distribution Office Furniture and Equipment Office Equipment Office Equipment 01771 Office Modules for Technical OfficesEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 13966 Miscellaneous Equipment AcquisitionEjecutivo 468 Improvement to Warehouses General Land and Building Building Improvement 19611 Power Plants Warehouses ImprovementsEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 19656 Elevator Replacement Parts ‐ NeomEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 13724 Sets of Tools for MaintenanceGeneración 196 Improvement to GasTurbines Combined Cycle Production Other Production Improvement 07542 Co2 Cooling System Units Turbine ‐ Combined Cycle Plant AguirreTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 14419 Increase Line Capacity 2300 Cambalache ‐ Arecibo SectionalizerGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 16116 Navigation Channel BuoyEjecutivo 605 Preliminary Studies ‐ Special Project Preliminary Surveys and Investigation Preliminary Surveys Preliminary Surveys 08329 Preliminary Studies ‐ Administrative ServiceGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 13534 New Transformer 500kVa 4160/480, Combined Cycle Plant AguirreEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 13969 Equipment for Printshop and the Graphic Art OficceTransmisión y Distribución 288 Grounding Mat Reconstruction Transmission Other Transmission Improvement 14838 Reconstruction Ground Mesh ‐ Substation  San JuanEjecutivo 526 Computer Equipment  ‐ Administrative Services Office Furniture and Equipment Computer Equipment Computer System 13689 Computer Equipment AdquisitionEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 15112 Elevators Parts Replacement of Neos BuildingTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15553 Line Reconstruction 8100Ejecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Corporate GPS Surveying ‐ UpgradeEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 19517 Security Equipment ‐ SanturcePlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment New Synchrophasors Grid Data Concentration and Analysys EquipmentGeneración 175 Pollution Control Projects  Production Thermal Production Plant Improvement 19621 Water Demineralization Plant Improvement ‐  Palo Seco Steam PlantEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 16322 Several Forklift Warehouse AreaServicio al Cliente 551 Equipment Communication ‐ Client Service Office Furniture and Equipment Other Equipment Comunication 14803 Communication Equipment ‐ Customer ServicePlanificación y Protección Ambiental 523 Computer Equipment  ‐ Planning and Environmental Office Furniture and Equipment Computer Equipment Computer System 09743 Data Base CIPTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 19626 Substation Construction 5020 and Substation 5817 Voltage Conversion Transmisión y Distribución 275 Increase Line Capacity Transmission 38KV Improvement 12495 Increase Line Capacity 3600 from Sabana Llana TC to La Ceramica SubstationEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 19657 Yaucono Building ImprovementGeneración 568 Other Equipment ‐ Electric System Office Furniture and Equipment Other Equipment Other Equipment New Specialized Equipment for Tool and Die Machine of SouthGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Foxboro Automation System Expansion and UpgradeGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 15921 Cathodic Protection and Improvement Condenser PipingEjecutivo 564 Other Equipment ‐ Administrative Services Office Furniture and Equipment Other Equipment Other Equipment 15230 Other Maintenance and Cleaning EquipmentsEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 19655 Air Conditioning Replacement Part and Fire Protection ‐ MonacilloPlanificación y Protección Ambiental 610 Preliminary Studies ‐ Planning and Environmental Protection  Preliminary Surveys and Investigation Preliminary Surveys Preliminary Surveys 02432 Preliminary Studies ‐ EnvironmentalServicio al Cliente 529 Computer Equipment  ‐ Client Service Office Furniture and Equipment Computer Equipment Computer System 08192 Computerized System‐Customer ServiceServicio al Cliente 570 Other Equipment  ‐ Client Service Office Furniture and Equipment Other Equipment Other Equipment 14837 Purchase Equipment for Center of Measuring StudiesTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 17084 Feeder Improvements Substation 5016 Villa Del Carmen 13.2 kVTransmisión y Distribución 316 Construction and Extension of  4.16  kV ‐ 8.32  kV Aerial Feeders Distribution 4.16 kV Expansion 17094 Extension Feeders Substation 5401 ‐ Peñuelas Pueblo 4.16 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17070 Underground Improvement, Mercedita AirportTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19631 Primary Feeder Extention Sub 4402 Bo. Los LlanosTransmisión y Distribución 288 Grounding Mat Reconstruction Transmission Other Transmission Improvement 06654 Grounding Mats ReconstructionTransmisión y Distribución 316 Construction and Extension of  4.16  kV ‐ 8.32  kV Aerial Feeders Distribution 8.32 kV Expansion 15625 Construction Feeders Substation 8202 Adjuntas 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 18627 Feeders Extension Substation 8013 Plaza Del Norte 13.2 kVTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19629 Increase Electrical Voltage Bo. Los LlanosTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17091 Extension Feeders Substation 5602 ‐ Guanica TC 13.2 kVTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 17090 Feeder Improvements Sbstation 5018 Canas TC 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 13565 Feeders Extensions to Verdemar 13.2  kV 2605 SubstationGeneración 360 Rehabilitation of Substations Distribution Distribution Improvement 12288 Purchase and Installation of Breakers 4160VEjecutivo 468 Improvement to Warehouses General Land and Building Building Improvement 13967 Small Improvements to the Warehouses‐Transmisión y Distribución 210 38  kV New Line Transmission 38 kV Expansion 19597 Lines Reconstruction 6900 to Hatillo PuebloTransmisión y Distribución 275 Increase Line Capacity Transmission 38KV Improvement 08641 Increase Line Capactiy 3100 from Sabana Llana TC to Canóvanas TCTransmisión y Distribución 275 Increase Line Capacity Transmission 38KV Improvement 15839 Increase Line Capacity 3100 from Canóvanas TC to 2306 SubstationTransmisión y Distribución 275 Increase Line Capacity Transmission 38KV Improvement 16391 Increase Line Capacity 3100 from Palmer TC to Fajardo TCTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement NEW Feeders Improvements Substation 2602 Humacao 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 19444 Feeders Improvements Substation 2702 Naguabo 8.32 kVGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 15029 Breaker Replacement ‐ 480V and 4160V Unit 3‐6 ‐ Costa Sur Steam PlantGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 19477 Traveling Screens Units 7 to 10, San Juan Steam PlantGeneración 175 Pollution Control Projects  Production Thermal Production Plant Improvement New Treatment Plant Filters ‐ Palo Seco Steam PlantTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17030 Extension Feeder 13.2  kV Substation 9405 PiñasTransmisión y Distribución 572 Other Equipment  ‐ Transmission and Distribution Office Furniture and Equipment Other Equipment Other Equipment 08245 Purchase Brigade EquipmentGeneración 175 Pollution Control Projects  Production Thermal Production Plant Improvement New Waste Treatment Plant Nautilus 1 Replacement ‐ Palo Seco Seteam PlantTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 09792 Increase Capacity Line 4800 Aibonito PDS 3502 ‐ Aibonito 3501

F‐3 shall list projected construction and capital expenditure requirements for each of the three [3] years following the test year. This Schedule shall include an explanation of how the projected capital expeditures correspond with PREPA's Integrated Resource Plan.

PREPA's capital improvement program is consistent with the IRP in that it contains projects such as AOGP to transition Puerto Rico's generation mix to Natural Gas, replace inefficient aging units, bring PREPA into compliance with MATS, and improve overall system reliability.

No. CEPR-AP-2015-0001

F 000009

Page 10: F 000001 - AEEaeepr.com/es-pr/QuienesSomos/Tarifas/03...Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ... 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $

Servicio al Cliente 570 Other Equipment  ‐ Client Service Office Furniture and Equipment Other Equipment Other Equipment 14256 Other Equipment Customer ServiceEjecutivo 565 Equipment Workshop Land Transportation Office Furniture and Equipment Other Equipment Other Equipment 14586 30 Tons Post Lift WheelbaseEjecutivo 470 Improvement to Workshops General Land and Building Building Improvement 15731 Environmental Improvements to WorkshopsTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion NEW Feeders Extensions from Juan Martin 13.2 kV  Substation 2906Transmisión y Distribución 207 115  kV  New Line Transmission 115 kV Expansion New New Line 115 kV Berwind TC ‐ Escorial SubstationTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion NEW Feeders Extensions from Juan Martin 13.2 kV  Substation 2906Transmisión y Distribución 472 Improvement to Other Buildings General Land and Building Building Improvement 07025 Implementation Disable RegulationGeneración 476 Improvement Land & Builddings ‐ Electrict System General Land and Building Building Improvement New Passenger Elevator for Administrative Building San Juan Steam PlantEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 16596 Small Improvements for Santurce StructuresPlanificación y Protección Ambiental 472 Improvement to Other Buildings General Land and Building Building Improvement 13209 Improvements to Bonus PlantsTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17079 Feeders Extension ‐ Humacao TC 13.2 kV Substation 2603Transmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 12641 Feeders Improvements Substation 2901 Yabucoa 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17076 Feeder Improvements Substation 9703 Comerio 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 18630 Construction Feeders Substation 8014 ‐ Factor 13.2 kVGeneración 190 Improvements to Steam Turbine Generator Combined Cycle Production Other Production Improvement New Torque Converters Unit 5 and 6 San Juan Steam PlantTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion 19539 Breaker for Capacitor Bank Aguadilla VictoriaEjecutivo 565 Equipment Workshop Land Transportation Office Furniture and Equipment Other Equipment Other Equipment 07301 Tools and Shop EquipmentPlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment 19601 Upgrade of the Lightning Detection and Location SystemGeneración 175 Pollution Control Projects  Production Thermal Production Plant Improvement 19619 CEMS Particulate MonitorPlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment 15910 Meteorological Data Collection EquipmentGeneración 568 Other Equipment ‐ Electric System Office Furniture and Equipment Other Equipment Other Equipment 07241 Equipment for Production DivisionPlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment 17113 Other Equipment‐Environmental ProtectionEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New NOC ‐ Software and HardwareTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 19627 Increase Line Capacity 1700 ‐ GuanicaTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 16939 Extension Feeders Substation 4603 ‐ Coamo PDSTransmisión y Distribución 215 38  kV Underground System Transmission 38 kV Expansion 17093 Underground Capacity Increase ‐ Terminal Líne 0300 and 7900Transmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion 19545 Ciales 115  kV SectionalizerTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Terminal Line 37800 at Cayey TC Improvement and Protection System ModernizationGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 18585 DEMI RehabilitationTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion NEW Sabana Llana TC Underground Terminal LineTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement NEW Improvements to Line 3000 Las Piedras ‐ Naguabo 38 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 05160 Improvements Feeders Substation 9602 Barranquitas 2 TC 8.32 kVGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 16017 Battery Banks ‐ Combined Cycle Plant AguirreTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 19435 Extension Feeders Substation 3205‐ Juncos TC 13.2 kVTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19628 Increase Electrical Voltage Bo. Coto Laurel to JacaguasTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement NEW Improvements to Line 3700 Yabucoa ‐ Guayama 38 kVTransmisión y Distribución 335 Construction and Extension of 13.2 kV Underground Feeders Distribution 13.2 kV Expansion 16471 Underground Feeder Extension Substation 1529 Cachete 13.2 kVGeneración 175 Pollution Control Projects  Production Thermal Production Plant Improvement New Waste Treatment Plant Nautilus 2 Replacement ‐ Palo Seco Seteam PlantGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement New Steam Coils Unit 5 and 6 Costa Sur Steam PlantTransmisión y Distribución 395 Distribution Lines Capacitors Distribution Distribution Improvement 02807 Purchase and Replacement of Lines CapacitorsGeneración 195 Improvement to Other Balance of Plants Combined Cycle Production Other Production Improvement 16455 Make‐Up Water System Replacement ‐ Seawater Tower, Combined Cycle Plant AguirreGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 19635 PSPS/SJSP 20" Fuel Transfer Line ImprovementGeneración 528 Computer Equipment  ‐  Electric System Office Furniture and Equipment Computer Equipment Computer System 06145 Electric System Office AutomatGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 14725 Boiler Support Structures Improvement ‐ Unit 1‐2 ‐ Aguirre Steam PlantGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 19639 Traveling Screens ‐  Palo Seco Steam PlantEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New OMSTransmisión y Distribución 320 Distribution System Expansion Distribution Distribution Expansion 15895 Extension Feeders 13.2 kV ‐ San Lorenzo SubstationTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19623 Voltege Convertion 13.2 kV Sta. Rita and La CuartaTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19632 Extension Feeder Substation  Arroyo to Patillas 13.2 kVTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion 19653 Villa Betina 115  kV SectionalizerTransmisión y Distribución 210 38  kV New Line Transmission 38 kV Expansion 09783 New Line 38  kV Substation Factor ‐ Barceloneta TCTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15637 Increase Line Capacity 2200Transmisión y Distribución 383 Special Transformers Distribution Distribution Improvement 02800 Purchase of Distribution TransformersTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 09793 Increase Line Capacity 6500Generación 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Condenser Circulating Water Pump Motor Control CenterEjecutivo 470 Improvement to Workshops General Land and Building Building Improvement 13621 Small Repairs to Repairs ShopTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 12426 Increase Line Capacity 9300Transmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 14350 Feeders Improvements Substation 3601 ‐ Cidra Pueblo 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17071 Underground Feeder Improvements Substation 5018 Canas  TC 13.2 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17081 Underground Feeder Improvements Substation 5004 ‐ La Rambla 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17114 Feeder Extension Substation 8405 Manati Urbano 13.2 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 02581 Feeders Improvements Substation 3501 ‐ Aibonito 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 12683 Relocate Feeder 8701 ‐ CialesTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17116 Feeder Extension Substation 8015 Arecibo District 13.2 kVTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement 08600 Caguas TC Control Room RelocatGeneración 196 Improvement to GasTurbines Combined Cycle Production Other Production Improvement 19500 Units 5 and 6 Combustion Turbines Insulation San Juan Steam PlantTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 12657 Feeder Improvements Substation 9901 Orocovis 8.32 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement NEW Improvements to Line 12600 Humacao 38 kVTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 19445 Humacao District Voltage Conversion 13.2 kVTransmisión y Distribución 390 Purchase and Instalation of Breakers and Sectionalizers Distribution Distribution Improvement 02804 Purchase and Capitalization of BreakersTransmisión y Distribución 392 Purchase Step ‐  Voltage Regulators Distribution Distribution Improvement 02806 Purchase and Capitalization of Step  Voltage RegulatorsTransmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion 15760 Humaco Industrial 38 kV SectionalizerTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement NEW Feeders Improvements Substation 2701 Naguabo 8.32 KvTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 18656 Feeders Construction Substation Camuy 13.2 kV

No. CEPR-AP-2015-0001

F 000010

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Transmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement NEW Aerial Feeder Improvement Substation 2003‐01  Las Crobas, FajardoEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New GIS ‐ G/Electric Upgrade ‐ ESRI MigrationEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 13968 Air Conditioner Replacements Parts and Fire Protection SystemTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16842 Increase Line Capacity 4600Transmisión y Distribución 363 Miscellaneous Substations Improvements Distribution Distribution Improvement 14874 Replacements Gates Substation DistrictsTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 16091 Underground Feeders Improvements Substation 1716 BTC 13.2 kVTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Terminal Line 37800 at Jobos TC Improvement and Protection System ModernizationTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 19439 Extension Feeders Substation 3402 Comsat 38/13.2 kVTransmisión y Distribución 255 Energy Management System  Transmission Other Transmission Expansion 17109 Improvement and Installation Remote Terminal Units Prepa SubstationTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 03268 Voltage Conversion Caguas District 13.2 kVTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 16515 Underground Hostos Avenue and Playa ‐ PonceTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 16006 Underground Feeder Improvements Substation 1806 Levittown 13.2 kVGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Condenser Improvement Unit 4 Palo Seco Seco Steam PlantTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 02623 Feeders Improvements Substation 6501 Sabana Grande 4.16 kVPlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment 04734 Specialized Measuring Equipment for Electric ParametersTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement 19666 230 kV Transmission Line ImprovementGeneración 150 Fuel Manangement and Storage Production Thermal Production Plant Improvement 15926 Construction Protection Against Impact – Palo Seco Steam PlantEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Oracle EBS Cloud Service On ‐ Software Redeploiment OnTransmisión y Distribución 230 115/38  kV  New Transmission  Center & Increase Capacity Transmission 115 kV Expansion 07745 Transmission Center 115/38  kV BairoaTransmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion 16175 Sectionalizer 38 kV CarolinaGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 16967 Feed Water Heater Replacement Unit 3 ‐ Palo Seco Steam PlantTransmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion 19618 Viaducto 38  kV Reconstruction Bus‐BarTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 19437 Underground Feeder Improvements Substation 3010 Villa Del Rey 8.32 kVEjecutivo 478 Improvement Land & Builddings ‐ Administrative Service General Land and Building Building Improvement 16595 Small Improvements for Monacillos StructuresTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16037 Complete Loop Between Line 9600 and 4900Transmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17075 Conversion Voltage Feeders Substation 3402 ‐ Comsat to 13.2 kVTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion NEW Humacao TC Underground Terminal LineTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion NEW Yabucoa TC Underground  Terminal LineTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 07792 Increase Capacity of Line 5600Transmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 12468 Increase Line Capacity 9800Generación 255 Energy Management System  Transmission Other Transmission Expansion 16214 Energy Administration System Update (SCADA)Transmisión y Distribución 530 Computer Equipment  ‐ Transmission and Distribution Office Furniture and Equipment Computer Equipment Computer System 04770 Equipment Computer Systems and Communications ‐ TDGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 14135 Water Demineralizer Plant and Polishers Demi, Unit 1‐2, Aguirre Steam PlantGeneración 195 Improvement to Other Balance of Plants Combined Cycle Production Other Production Improvement 16451 Seawater Cooling Tower Improvement, Combined Cycle Plant AguirreTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 12492 Increase Line Capacity 7800 Dorado Vega AltaTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 06688 Relocation and Increase Line Capacity 500Transmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 06716 Underground Feeder Improvements Substation 2302 Rio Grande 13.2 kVGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 14142 Discharge Canal Maintenance ‐ Aguirre Steam PlantTransmisión y Distribución 316 Construction and Extension of  4.16  kV ‐ 8.32  kV Aerial Feeders Distribution 8.32 kV Expansion 17083 Extension Feeders Substation 8801 ‐ Morovis 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17117 Extension of Substation 8404 Feeder Manati 13.2 kVGeneración 198 Combined Cycle Heat Recovery Improvement Production Other Production Improvement 15763 Valve Replacement and Improvement of Hrsg'S ‐ Combined Cycle Plant AguirreTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution Improvement New Feeder Improvement line 4400 and 3900 Planta San Juan ‐ Seccionador CaparraTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 02838 Improvements to the 38  kV Line 0100Transmisión y Distribución 210 38  kV New Line Transmission 38 kV Expansion 13536 38 kV Line 0200 ReconstructionTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 16755 Feeder Improvements Substation 6014 Once De Agosto 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 16837 Feeders Construction Substation 6603 Parguera 13.2 kVTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 19532 Underground Feeder Improvements of Substation 9202 Dorado Pueblo 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 16899 Feeder Extensions Substation 1404 Hato Rey GIS 13.2 kVPlanificación y Protección Ambiental 560 Other Equipment  Planning and Environmental Protection Office Furniture and Equipment Other Equipment Other Equipment 15010 Load Studio Equipment ‐ DistributionTransmisión y Distribución 316 Construction and Extension of  4.16  kV ‐ 8.32  kV Aerial Feeders Distribution 4.16 kV Expansion 18628 Feeders Extension Substation 8301 Jayuya 4.16 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 06671 Increase Line Capacity 7100Transmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 07784 Lines Reconstruction 0100 and 0200 Transmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 14324 Increase Capacity Line 4300 Bayamon TC ‐ Bayamon SeccTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17027 Feeder Improvements Substation 9501 Unibon 8.32 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15454 Line Recontruction and Increase Capaciti 10700 38 kV Hato Tejas ‐ DoradoTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement New Surge Arrest for 115 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 08681 Increase Line Capacity 3700Transmisión y Distribución 337 Construction and Extension of 4.16  kV ‐ 8.32  kV Underground FeedersDistribution 8.32 kV Expansion 19589 Underground Feeders Improvements of 7004 Ramey I SubstationTransmisión y Distribución 330 Line Extension to Serve New Customers Distribution Distribution Expansion 02434 Distribution Line Extension to Serve New CustomersEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New BackBone Transmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 07885 Feeder Improvements Substation 3602 Las Cruces 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 12643 Feeders Improvements Substation 9601 ‐ Barranquitas 8.32 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 07783 Lines Reconstruction 700 of 38 kVGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 12246 Feed water Pump Turbine  Improvement ‐ Palo Seco Steam PlantTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 17072 Feeder Improvements Substation 3701 Aguas Buenas 8.32 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 17073 Increase Line Capacity 3800 Cayey TC ComsatTransmisión y Distribución 335 Construction and Extension of 13.2 kV Underground Feeders Distribution 13.2 kV Expansion 12731 Underground Feeder Extensions Substation 1111 Martin PeñaTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 19528 Improvements to Bairoa 3008 8.32  kV Underground SystemTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 15583 Feeders Extension Substation 6406 San German TC 13.2 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 16556 Feeder Improvements Substation 3502 Aibonito Pds 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17087 Extension Feeders Substation 7903 ‐ Lares 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 18609 Feeders Extension Substation 6802 Acacias 13.2 kVTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 16821 Feeder Improvements Substation 1710 Cana 13.2 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15399 Monacillos TC 38 kV Bus‐Bar Improvement

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Page 12: F 000001 - AEEaeepr.com/es-pr/QuienesSomos/Tarifas/03...Income Statement FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ... 0.17447 $ 0.11548 $ 0.09603 $ 0.10897 $

Transmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 19420 Relocation Line 3100 Intermediate to Carraizo ‐ Substation 1201Generación 175 Pollution Control Projects  Production Thermal Production Plant Improvement 14125 Water Treatment Plant Clarifiers ‐ Aguirre Steam PlantTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17115 Feeder Extension Substation 7505 Mora TC 13.2 kVTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 19598 Construction of Underground System Vista AzulTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 19671 Feeder Extensions New Substation  Añasco TC 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 16238 Feeder Extension Substation 7304 Punta Del Mar 13.2 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 16242 Feeder Extension Substation 7008 Victoria 13.2 kVTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 13562 Charco Hondo ‐ Arecibo SubstationTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 06826 Feeder Improvements Substation 2401 Canovanas 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 07907 Improvement Feeder Substation 2301 Rio Grande 8.32 kVTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 17012 Underground Feeder Improvements Substation 2001 Fajardo Pueblo 8.32 kVTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 19423 Feeder Improvements Substation 1607 Barraza 4.16 kVTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 19449 Underground Feeders Improvement Substation 2301 Rio Grande 8.32 kVTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 19609 Extending Distribution Feeder La Ceramica Substation 1619 13.2 kVTransmisión y Distribución 335 Construction and Extension of 13.2 kV Underground Feeders Distribution 13.2 kV Expansion 19668 Underground Feeder Extensions Substation 2005 ‐ Fajardo TC 13.2 kVTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement New Underground Feeder Improvement Substation 2101‐01 Ceiba 8.32 kVTransmisión y Distribución 462 Minor Improvements Technical Offices General Land and Building Building Improvement 01198 Improvement to Lands and BuildingsTransmisión y Distribución 310 Mobile Substation Distribution Distribution Expansion 07956 Purchase of Mobile SubstationEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New CC&B ‐ UpgradeGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Air Preheater Baskets Unit 7 San Juan Steam PlantGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 13422 Boiler Improvement Unit 3 ‐ Palo Seco Steam PlantTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 kV Expansion NEW Berwind TC Underground Terminal LineServicio al Cliente 480 Improvement to Commercial Offices ‐ Client Service General Land and Building Building Improvement 01324 Repairs to Commercial OfficesTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 16170 Capacity Increase of Line 37500Transmisión y Distribución 316 Construction and Extension of  4.16  kV ‐ 8.32  kV Aerial Feeders Distribution 4.16 kV Expansion 18629 Feeder Extension Substation 8104 San José 4.16 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15491 Construction and Increase Line Capacity 2200 Dorado TC Vega AltaGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement New Air Preheater Baskets Unit 5 and 6 Costa Sur Steam PlantGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 14143 Main Steam Condenser ‐ Aguirre Steam PlantTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 17129 Substation 1717 Crea 13.2  kV Underground Feeders ReconstructionTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 08644 Increase Line Capacity 3100 and 3600Transmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 06723 Adquisition and Capitalization of Switching UnitsTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement New Tie Breaker 115 kV Cayey TCTransmisión y Distribución 572 Other Equipment  ‐ Transmission and Distribution Office Furniture and Equipment Other Equipment Other Equipment 01769 General Tools and EquipmentTransmisión y Distribución 315 Construction and Extension of 13.2  kV Aerial Feeders Distribution 13.2 kV Expansion 17086 Extension Feeders Substation 7805 ‐ San Sebastian TC 13.2 kVTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16096 Relocation and Increase Lines Capacity 4000 and 4100Generación 195 Improvement to Other Balance of Plants Combined Cycle Production Other Production Improvement 17041 Spares and Maintenance Components for Units 5 and 6 San Juan Steam PlantGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 19660 Piping Hangers Replacement Unit 3 and 4 palo Seco Steam PlantTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 19606 Lines Reconstruction 10700 of 38  kV of BayamonGeneración 576 Other Equipment ‐ Corporate Security Office Furniture and Equipment Other Equipment Other Equipment 16993 Security Equipment‐Electric SystemTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 19403 Improvements Feeders Underground Substation 2601 ‐ Humacao 8.32 kVGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 18637 Culebra Plant ImprovementsTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 02707 Medical Center 13.2  kV Mayaguez SubstationTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 05207 Cabo Rojo 13.2 kV SubstationServicio al Cliente 368 Replacement of Residential and Commercial Services Distribution Distribution Improvement 06247 Service Drops Replacement ‐ CommercialGeneración 190 Improvements to Steam Turbine Generator Combined Cycle Production Other Production Improvement 17042 Steam Turbine ‐ Generator Improvement U‐5 San Juan Steam PlantGeneración 190 Improvements to Steam Turbine Generator Combined Cycle Production Other Production Improvement 17044 Steam Turbine and Generator Improvement Unit 6 San Juan Steam Plant Generación 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Air Preheater Support Trunion Replacement Unit 10 San Juan Steam PlantTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 12757 Improvements Underground Feeders Substation 1710 Cana 13.2 kVTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 19434 38900 Line Relocation At Martin PeñaTransmisión y Distribución 175 Pollution Control Projects  Production Thermal Production Plant Improvement 16990 SPCC Regulation for Electric SubstationsTransmisión y Distribución 397 Distribution Line Voltage Converter Distribution Distribution Improvement 09031 Purshase of Voltage ConverterTransmisión y Distribución 213 115 kV Undergroud System Transmission 115 kv Improvement NEW Replacement parts of underground 115 kv cable  ‐ Metro LoopGeneración 555 Equipment ‐ Telephone and Data Lines Office Furniture and Equipment Other Equipment Comunication 16268 IT Infraestructure SecurityTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution Improvement New Undergroud Feeder Improvement 6300 Isla Grande GIS 13.2 kVTransmisión y Distribución 390 Purchase and Instalation of Breakers and Sectionalizers Distribution Distribution Improvement 09692 Replacement Devices Automatic Protectives DistributionTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 07808 Underground Feeder Improvements Substation 1116 Planta Santurce 13.2 kVTransmisión y Distribución 600 Preliminary Studies ‐ Engineering  Preliminary Surveys and Investigation Preliminary Surveys Preliminary Surveys 02430 Preliminary Studies ‐ EngineerTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16759 Lines Reconstruction 13400 Acacias ‐ LajasTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15636 Increase Line Capacity 14700Transmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16082 Line 6900 ConstructionGeneración 292 Transmission Misc. Improv. Plant ‐ Electric System Transmission Other Transmission Improvement 19658 Relay ProtectionPlanificación y Protección Ambiental 610 Preliminary Studies ‐ Planning and Environmental Protection  Preliminary Surveys and Investigation Preliminary Surveys Preliminary Surveys 02431 Preliminary Studies ‐ PlanningTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Costa Sur Swithyard Protection System ModernizationGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement New Foxboro Automation System For Steam TurbineGeneración 173 Pollutant Removal and Treatment Production Thermal Production Plant Improvement 19561 Asbestos Removal and ReplacementTransmisión y Distribución 383 Special Transformers Distribution Distribution Improvement 07976 Repair of Transformers of DistributionEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System 19563 Corporate Technology and Communications AcquisitionTransmisión y Distribución 285 Breakers Uprating Transmission Other Transmission Expansion 00786 Replacement Breakers and Increased CapacityGeneración 540 Equipment ‐ Air Transportation Office Furniture and Equipment Transportation Equipment Transportation 16261 Major Repairs for AircraftsTransmisión y Distribución 215 38  kV Underground System Transmission 38 kV Expansion 19603 Underground Line 38  kV Medical Center Tap 8900Transmisión y Distribución 398 Distribution System Automation Distribution Distribution Improvement 04378 Distribution System Automation Generación 175 Pollution Control Projects  Production Thermal Production Plant Improvement 09543 Environmental Projects On the Electric SystemGeneración 555 Equipment ‐ Telephone and Data Lines Office Furniture and Equipment Other Equipment Comunication 16635 Replacement of Backbone to Microwave SystemGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 16950 Steam Coils Replacement Units 3 and 4 Palo Seco Steam Plant

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Generación 540 Equipment ‐ Air Transportation Office Furniture and Equipment Transportation Equipment Transportation New Helicopter Replacement ‐ PREPATransmisión y Distribución 230 115/38  kV  New Transmission  Center & Increase Capacity Transmission 115 kV Expansion 13939 Second Transformer 115/38 kV ‐ Sabana LlanaEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Corporate Electronic Document ‐ Upgrade & ImplementarionTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 19678 Line 37400  Cambalache TC ‐ Barceloneta TCTransmisión y Distribución 374 Improvements to the 13.2 kV Aerial Distribution System  Distribution 13.2 kV Improvement 17125 Improvements to the 13.2  kV Aerial Distribution SystemGeneración 600 Preliminary Studies ‐ Engineering  Preliminary Surveys and Investigation Preliminary Surveys Preliminary Surveys New Preliminary Studies ‐ Dams and Reservoirs Transmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37400 Barceloneta TC ‐ Manati TCTransmisión y Distribución 294 Other Transmission Plant  Transmission Other Transmission Improvement 00895 Other Transmission ExpensesTransmisión y Distribución 213 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 40500 extension 115 kV  Monacillo ‐ Hato Rey (Undergroud)Generación 187 Improvement to Balance Turbine Simple Cycle Production Other Production Improvement 16978 Aereoderivative Improvement  of MayaguezTransmisión y Distribución 230 115/38  kV  New Transmission  Center & Increase Capacity Transmission 115 kV Expansion 13927 Capacity Increase of the Transformer 1 Bayamón TCTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37400 Manati TC ‐ Vega Baja TCTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Viaducto TC New Control Room and Protection System ModernizationGeneración 550 Equipment Communication ‐ Electric System Office Furniture and Equipment Other Equipment Comunication 16823 Optimize the Radio SystemTransmisión y Distribución 400 Land & Right of Way General Land and Building Land Expansion 01036 Land and Right  of Way ‐ EngineeringGeneración 150 Fuel Manangement and Storage Production Thermal Production Plant Improvement New Bunker C Reserve Tank R3 Conversion to Diesel ‐ PPSPGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 14151 Steam Valve Reconditiong Aguirre Steam PlantTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 16841 San Lorenzo 13.2  kV SubstationTransmisión y Distribución 237 115  kV Switchyard New & Expansions Transmission 115 Kv Expansion 19546 Cachete 115  kV SectionalizerTransmisión y Distribución 207 115  kV  New Line Transmission 115 kV Expansion 12425 Line 37800 Input of 115  kV and  38  kV In Bairoa TCEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Real Time Data WarehouseGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement New Turbine Improvement Unit 9 San Juan Steam PlantGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement New Turbine Improvement Unit 10 San Juan Steam PlantTransmisión y Distribución 235 230  kV Switchyard New and Expansions Transmission 230 kV Expansion NEW Bayamon 230 kV Switchyard ExpansionTransmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion 19602 Expansion Medical Center 38 kV SectionalizerTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Jobos TC New Control Room and Protection System ModernizationTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Monacillo TC New Control Room and Protection System ModernizationServicio al Cliente 385 Purchase of Meters and Metering Equipment Distribution Distribution Improvement 02802 Acquisition of Meters ‐ Customer ServiceGeneración 199 Other Improvement to Generation Plants  Production Other Production Improvement 19641 Fire Protection Systems ‐ GenerationGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 16969 Boiler Improvement Unit 4 Palo Seco Steam PlantGeneración 198 Combined Cycle Heat Recovery Improvement Production Other Production Improvement 17040 Scheduled maintenance HRSG ‐ Unit 6 ‐ San Juan Steam PlantServicio al Cliente 340 New Services Drops Installation  ‐ Commercial Distribution Distribution Expansion 06246 New Service Installation ‐ Electrical OutletGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement New Installation of Major High Pressure Parts (SH, RH, Econ) Unit 9 San Juan Steam PlantGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 16941 Turbine Generator Back Up Improvement South Coast Steam PlantTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Bayamon TC New Control Room and Protection System ModernizationEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Meter Data Management Transmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission Other Transmission Improvement NEW Aguirre Switchyard Protection System ModernizationTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 09434 Reconstruction Power line 37600, 37700, 38200, 38600 y 38700Generación 198 Combined Cycle Heat Recovery Improvement Production Other Production Improvement 17039 Scheduled maintenance HRSG ‐ Unit 5 ‐ San Juan Steam PlantTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 19552 Las Piedras 13.2 kV SubstationTransmisión y Distribución 215 38  kV Underground System Transmission 38 kV Expansion New Underground 38 kV  Bayamon Pueblo GISGeneración 165 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 14800 Turbine Generator Improvement Unit 3 Palo Seco Steam PlantTransmisión y Distribución 300 New Distribution Substations Distribution Distribution Expansion 14532 Morovis 13.2 kV SubstationGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 19638 Water Storage Tanks and Dike ImprovementsTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 17138 Line 37800 Jobos TC ‐ Cayey TCServicio al Cliente 385 Purchase of Meters and Metering Equipment Distribution Distribution Improvement 07979 Acquisition and Installation Meter Equipment of MeasurementTransmisión y Distribución 290 Transmission Misc. Improv. Plant  ‐ Engineering  Transmission 115 kV Improvement New 115 kV San Juan Switchyard ReconstructionTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 00917 Blankets Estimates for Underground SystemsTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 16621 Reconnect Line 1900Generación 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 13448 Turbine Generator Improvement Unit 4 ‐ Palo Seco Steam PlantEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Service SuiteTransmisión y Distribución 330 Line Extension to Serve New Customers Distribution Distribution Expansion 02433 Line Extension to Serve New CustomersGeneración 170 Improvements to Steam Balance of Plant Production Thermal Production Plant Improvement 15923 Water Heaters Unit 5 and 6 South Coast Steam PlantGeneración 187 Improvement to Balance Turbine Simple Cycle Production Other Production Improvement 14089 Three (3) Major Inspections Hydro Gas PlantGeneración 180 Hidroelectric Plant Improvements Production Hydraulic Production Plant Improvement 14092 Hydroelectric Plants Improvements ‐ HG PlantTransmisión y Distribución 275 38  kV Line Rehabilitation Transmission 38 kV Improvement 15610 Lines Reconstruction 1500 and 2000 of 38 kVGeneración 555 Equipment ‐ Telephone and Data Lines Office Furniture and Equipment Other Equipment Comunication 15002 Infrastructure and Technology ‐ Fiber OpticsPlanificación y Protección Ambiental 175 Pollution Control Projects  Production Thermal Production Plant Improvement 16786 Modification to the Seawater Cooling Discharge System‐ South Coast Steam PlantTransmisión y Distribución 378 Improvements to the 13.2 kV Underground System Distribution 13.2 kV Improvement 06730 Improvements Feeders Underground Substation 1646 Sabana Llana TC 13.2 kVTransmisión y Distribución 230 115/38  kV  New Transmission  Center & Increase Capacity Transmission 115 kV Expansion 13933 Transmission Center 115/38  kV VenezuelaTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37800 Buen Pastor TC ‐ Monacillo TCTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 41400 Humacao TC ‐Juncos TCTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37800 Caguas TC ‐ Buen Pastor TCGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 19636 Boiler Support Structure ImprovementsTransmisión y Distribución 280 Transmission Pole Replacements  Transmission Other Transmission Improvement 00894 Transmission Pole ReplacementTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37400 Vega Baja TC ‐ Dorado TCTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 50900 Aguas Buenas GIS‐Bayamón TC Improvement Generación 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 14727 Generator Improvement  Unit 1 ‐ Aguirre Steam PlantGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 16749 Generator Improvement Unit 2 Aguirre Steam Plant Generación 360 Rehabilitation of Substations Distribution Distribution Improvement 08704 Improvement of Distribution TransformersTransmisión y Distribución 207 115  kV  New Line Transmission 115 kV Expansion New New 115 kV Transmission Line Berwind TC ‐ Martin Peña GISTransmisión y Distribución 230 115/38  kV  New Transmission  Center & Increase Capacity Transmission 115 kV Expansion 16987 Switchyard 115 kV ‐ San Juan GISGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 16975 Turbine Generator Improvement Unit 6 South Coast Steam PlantGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 14169 Boiler Improvement U‐2 ‐ Aguirre Steam Plant

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Generación 190 Improvements to Steam Turbine Generator Combined Cycle Production Other Production Improvement 16752 Steam Turbine and Generator Improvement Units 1 ‐ 2, Combined Cycle Plant AguirreGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 14165 Turbine Generator Improvement Unit 1 ‐ Aguirre Steam PlantTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 16184 Reconstruction Powerline 38300Generación 180 Hidroelectric Plant Improvements Production Hydraulic Production Plant Improvement 14507 Partial Dredging to the Dos Bocas Lake of Central Hydro GasGeneración 150 Fuel Manangement and Storage Production Thermal Production Plant Improvement 19637 Fuel Storage Tanks ImprovementEjecutivo 521 Computer Equipment  ‐ Systems Office Furniture and Equipment Computer Equipment Computer System New Data Center ‐ Migration Plan ‐ Relocation to PREPANetworkGeneración 196 Improvement to GasTurbines Combined Cycle Production Other Production Improvement 14672 Scheduled Maintenance Stag I Combined Cycle Aguirre Steam PlantTransmisión y Distribución 213 115 kV Undergroud System Transmission 115 kV Expansion NEW New Line 115 kV Yabucoa TC‐ Humacao TC  (Underground)Transmisión y Distribución 242 38  kV Switchyard New & Expansions Transmission 38 kV Expansion 08574 Bayamon 38 kV Gas Insulated SubstationTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 51000 Aguas Buenas GIS ‐ Sabana Llana Improvement Transmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 36200 Monacillo TC ‐ Quebrada Negrito ImprovementGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 16974 Turbine Generator Improvement Unit 5 South Coast Steam PlantTransmisión y Distribución 225 230/115  kV  New Transmission  Center & Increase Capacity Transmission 230 KV Expansion NEW 2nd Transformer 230/115 kV and GIS 115 kV, GIS Bus 230 KV ‐ Bayamon TCGeneración 292 Transmission Misc. Improv. Plant ‐ Electric System Transmission Other Transmission Improvement 16382 Replacement Transformer of Power TransmissionPlanificación y Protección Ambiental 175 Pollution Control Projects  Production Thermal Production Plant Improvement 16766 Modification to the Cooling Water Intake Structure South Coast Steam PlantGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 15243 Boiler Improvement U‐1 ‐ Aguirre Steam PlantTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement NEW Line 37800 Cayey TC ‐ Caguas TCTransmisión y Distribución 213 115 kV Undergroud System Transmission 115 kV Expansion NEW New Line 115 kV Sabana Llana TC‐ Berwind TC  (Underground)Generación 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 18651 Turbine ‐ Generator Improvement U‐2 Aguirre Steam PlantTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 17118 Structural Reconstruction of 115  kV LinesGeneración 165 Improvements to Steam Turbine Generator Production Thermal Production Plant Improvement 13442 HP and IP Rotor Improvement ‐ Aguirre Steam Plant Generación 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 16973 Boiler Improvement Unit 6 Costa Sur Steam PlantTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 50900 Aguirre SP‐Aguas Buenas GIS ImprovementTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 51000 Aguirre SP‐Aguas Buenas GIS ImprovementTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 50100 Cambalache Planta ‐ Manati TCTransmisión y Distribución 267 115  kV Line Rehabilitation Transmission 115 kV Improvement 08581 Power Line 36100 Improvement Transmisión y Distribución 245 Capacitor Bank ‐ Transmission Transmission 115 Kv Expansion NEW STATCOM 115 kV, 100MVARS MonacilloGeneración 160 Improvements  to Steam Boilers  Production Thermal Production Plant Improvement 16972 Boiler Improvement Unit 5 Costa Sur Steam PlantTransmisión y Distribución 245 Capacitor Bank ‐ Transmission Transmission 115 Kv Expansion NEW STATCOM 115 kV, 100MVARS Bayamon TCTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 50200 Manatí TC‐Bayamón TC ImprovementTransmisión y Distribución 265 230  kV Line Rehabilitation Transmission 230 kV Improvement NEW Line 50200 Costa Sur Plant ‐ Manatí TC ImprovementsTransmisión y Distribución 382 Street Lighting  Distribution Distribution Improvement 01034 Underground and Aerial Lines Street Lighting ‐ Urban ZoneTransmisión y Distribución 379 Improvements to the 4.16 KV ‐ 8.32 KV Underground System Distribution 8.32 kV Improvement 18633 Improvements to the 4.16  kV ‐ 8.32  kV Underground SystemsTransmisión y Distribución 399 Other Distribution Projects Distribution Distribution Improvement 01035 Other Distribution PlantGeneración 196 Improvement to GasTurbines Combined Cycle Production Other Production Improvement 16945 Combined Cycle Improvement U‐5 San Juan Steam PlantGeneración 196 Improvement to GasTurbines Combined Cycle Production Other Production Improvement 16946 Combined Cycle Improvement U‐6 CSJGeneración 185 Improvement Combustion Turbines Simple Cycle Production Other Production Improvement 15880 Major Inspection "C" Unit 1‐3 CambalacheServicio al Cliente 385 Purchase of Meters and Metering Equipment Distribution Distribution Improvement 16677 Acquisition of Meters Secondary LinesEjecutivo 545 Equipment ‐ Adquisition and Replacement of Land Transp. Office Furniture and Equipment Transportation Equipment Transportation 13713 Vehicle Replacement ‐ PrepaTransmisión y Distribución 370 Improvements to 4.16 kV ‐ 8.32 kV Aerial Distribution System Distribution 8.32 kV Improvement 00968 Blankets Estimates Distribution for Urban Area

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Schedule F-4

1

Presentation of the Test Year and Rate Effective Year

The Puerto Rico Electric Power Authority’s (PREPA) Fiscal Year (FY) 2014 started July 1, 2013, and ended June 30, 2014, was selected as the “Test Year” due to its being the most recent audited set of financial information. While PREPA generally follows FERC or NARUC based utility accounting, its audited financial statements were prepared under Generally Accepted Accounting Principles. In order to determine the appropriate accounting for regulatory purposes, Navigant reviewed PREPA internal FY 2014 accounting information provided by the PREPA Finance Directorate. This data provided the basis for establishing the regulatory accounting that comprises the FY 2014 revenues and individual expenses for the Test Year based revenue requirement. Certain adjustments were required to present certain unique accounting practices, including the GAAP presentation of revenues intended to be collected for the funding of uncollectible accounts, payments in lieu of taxes, and certain legislated subsidies. FY 2017 ending June 30, 2017, was selected as the Rate Effective Year and begins on July 1, 2016. The adjustments for known and measurable changes to reflect PREPA revenue requirements for the Rate Effective Year come from PREPA Planning and Research Division, the PREPA Business Plan (as updated), and performance improvement estimates from AlixPartners, and Millstein & Co. debt service estimates and projections associated with the restructuring of PREPA’s debt. The FY 2017 (FY 2014 adjusted) revenue requirements and financial projections are presented and attested to by PREPA and its advisors in related testimony.

Methodology for Determination of Return or Cost of Capital

Our general methodology for developing revenue requirement is cash basis with certain modifications. In this approach, all costs are funded from current-period revenues, including funding for necessary capital spending. We discuss this in greater detail in the revenue requirements testimony, PREPA Exhibit (Ex.) 5.0. In general, the figures and estimates for Rate Effective Year FY 2017 are based upon the PREPA Business Plan.

Summary of Significant Assumptions

I. Net Revenues

In the financial forecast we modeled revenues based on our understanding of PREPA’s rate structure and revenue recovery. For the Test Year FY 2014 we used internal PREPA reports on Base Rate Revenue and calculated Fuel & Purchased Power Cost Adjustment revenues based on Fuel & Purchased Power Expense expenditures, as required by law. For the Rate Effective Year, we estimated base rate revenues using prior year per kWh estimates of base rate and FY 2017 kilowatt hour sales amounts.

II. Sales

The amounts used for historical and forecast total sales used in the Test Year and the Rate Effective Year were provided by PREPA Planning and Research. The load forecast used in the rate differs from that used in PREPA’s original Integrated Resource Plan (IRP) due in large part to the availability of more recent and robust data. The IRP relied on data from early calendar year 2015, which included load reduction estimates to energy efficiency from municipalities, government agencies, and corporations meeting Act 57 goals. Rate case projections were revised to adjust the energy efficiency assumption, as more recent data showed much of the energy efficiency assumed did not materialize. Rate case projections were also revised based on an econometric analysis of PREPA customers’ price elasticity to lower overall rates driven by fuel prices and operating efficiencies.

III. Fuel & Purchased Power Expense

Fuel and Purchased Power expenses for the historical and forecast period were developed and provided by PREPA Finance and PREPA Planning and Research. The forecast estimated for expenditures on fuel

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Schedule F-4

2

are consistent with PREPA’s IRP, such that PREPA moves its generation mix to be less dependent on heavy oil. The forecast assumes certain capital expenditures are made, such as AOGP, which enable a shift to greater natural gas generation. The Fuel & Purchased Power performance improvements envisioned in the Business Plan are not embedded in the Fuel & Purchased Power expense forecast, but are accounted for as a separate line item.

IV. Non-Fuel O&M Expense

Historical figures for non-fuel O&M expense are based on PREPA accounting records and reports. The current fiscal year estimates and forecast period figures are based on the Business Plan, which includes significant consideration for performance improvement through PREPA’s various cost savings initiatives.

A. Salaries

Salaries are forecast based on projected number of employees and hourly wages, and assuming the average employee works 1,950 hours a year. Headcount for 2016 is estimated to be 6,710 employees, declining to 6,395 employees by 2019 and staying constant for the balance of the forecast period. Retirements are assumed based on employees with more than 24 years of service, with no additional attrition assumed. Salaries are based on hourly salaries of PREPA in March 2015; and grow by 1% per year from 2017 onwards.

B. Pension & Benefits, Overtime & Overtime Benefits

Employee benefits are calculated as 63.19% of Base Salary beginning in FY 2016. Benefits increase 1% annually from FY 2017 through FY 2019 and are held constant at 66.19% thereafter. Benefits calculated for overtime are calculated in the same manner as they are calculated for salaries. PREPA’s pension funding is forecast to stay constant from the historical to the forecast period.

C. Additional Safety Upgrades

The assumptions for additional safety upgrades have been developed by DuPont. The forecast is for operational expenditures that are not included in the base line operational expense forecast and includes one-time expenses. These expenses include:

• Reinforcing safety awareness in the workforce and strengthening communication of special operational safety processes

• Acquisition of safety equipment established in OSHA’s new rules and procedures • Training PREPA employees with latest safety techniques • Safety operational improvements in PREPA’s facilities

On a go-forward basis additional safety upgrades will include expenditures to ensure new processes are followed.

D. Other Expenses

This category is comprised of Materials, Per Diem, Property & Casualty Insurance Premiums, Restructuring Fees, Retiree Medical Benefits, Security Expenses, Banking Services, Maintenance, Utilities, and Miscellaneous expenses. All Other Expenses except for Restructuring Fees are projected to grow at 1% per year off the 2015 base over the forecast period. Restructuring Fees are expected to be zero after FY 2017.

E. Bad Debt / Uncollectible Revenue

The provision for Bad Debt, also known as the provision for uncollectible revenue, recovers revenue for service rendered that is not collected. This line item is intended recover from non-municipal non-special customers only, such that there is no overlap with CILT & Subsidies. The estimate used in the revenue requirement is based on overall billed revenue and total collections data from the Monthly Operating

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Schedule F-4

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Reports. Overall billed revenue includes all government entities, including municipalities. Total collections include all cash collections, including other income. The current estimate was compared to past bad debt write-off amounts and found to be in the range of prior years.

V. CILT & Subsidies

It is a legal requirement for PREPA to provide municipal and other special customers with free electric service. “CILT and Subsidies” comprises three major categories of subsidy expenses: public lighting, special customer subsidies – primarily low income customers, and municipalities. The current definition of CILT, which includes municipalities and public lighting, will be changed to include only municipalities. Going forward, public lighting will be categorized with special customer subsidies. Act 4-2016 stipulates that CILT will be capped so municipalities that exceed a certain level of consumption will have to pay for excess consumption. Estimates for the cost of service for CILT & Subsidies were calculated for the historical and forecast period by PREPA Planning & Research.

VI. Performance Improvements

The development of PREPA’s performance improvement initiatives and savings estimates was performed by PREPA’s restructuring advisor, AlixPartners. A summary of these initiatives and savings is as follows.

A. Fuel Performance Improvement Savings

1. Optimize - generation dispatch

Implemented an S&OP process that enabled the optimization of fuels inventory levels and capitalize dispatch optimization

2. Fuel Sourcing (#6 and #2)

Used a strategic RFP process to deliver fuel adder savings of $22mm to date and a one-time cash improvement of $50mm from better credit terms. Additional saving of $9mm and one-time $15mm cash improvement to be delivered with the fuel contract renewals.

3. Fuel Supply Chain Structure (Costa Sur)

Negotiated the natural gas contract for the Costa Sur Complex with an annual saving of ~$33mm

4. Spinning Reserves and Forced Outages

Analyzed the root causes of forced outages by power plant and implemented mitigation actions to reduce the frequency and severity of forced outages. This will also support the reduction of spinning reserves. On target to deliver ~$54mm in annual savings beginning in fiscal year 2017

B. Customer Service Improvement Savings 1. Reduction in CILT

Represents reduction in CILT subsidy by charging municipalities for electricity consumption on for-profit ventures. $20mm in savings were estimated based on an analysis of top 6 municipalities in April 2015. Recent detailed analysis by PREPA shows an improvement in CILT of approximately$23mm per month. NOTE - these savings are now embedded in the CILT line item of the revenue requirement case model

2. Increasing reconnection charges

Savings are based on charging higher costs to customers for reconnection service beginning January 2017. Currently low consumption customers (480V and below) pay $25 to reconnect service and it costs

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PREPA $52 to reconnect service. Similarly, high consumption customers (>480V) pay $100 for a reconnection and it costs PREPA approximately $500 to reconnect those customers. PREPA is proposing to increase reconnection rates to $75 for low consumption customers and $750 for high consumption customers; the change should lead to additional collections of approximately $10mm per year.

3. Theft recoveries and reduced T&D loss

To date non-technical losses at PREPA have declined from 6.35%, June 2014 trailing twelve months (TTM), to 5.68%, December 2015 TTM. This reduction in non-technical losses represents a run-rate improvement to base rate collections of approximately $8mm. In FY 2017, PREPA projects a non-technical loss rate of 5.3% which translates to a recurring annual savings of approximately $12mm. PREPA also projects that for it will improve theft-related collections by approximately $8mm per year.

C. Procurement Improvement Savings

1. Fleet and Shops

~300 vehicles have been removed from the fleet to date generating ~$8mm in maintenance and vehicle replacement savings. There's a plan in place to remove another ~300 by late Summer 2016 and 50 more by the end of FY17. Also, negotiations with a fleet maintenance and repair management vendor are currently ongoing. Once complete, the maintenance and repair of approximately one half of PREPA’s fleet will be outsourced.

2. Procurement and Inventory D. . The PREPA Revitalization Act makes the request for proposal process legal

across all for items in the EDE/MRO, business essentials, structures, meters, and fleet parts categories. Multiple RFPs are underway and are expected to generate approximately 20% savings for each. In addition, multiple procedures and controls have been put in place to eliminate wasteful spend, improve inventory management techniques, and enhance coordination between the operational directorates and sourcing. Other Improvement Savings

1. Medical benefit savings

PREPA has implemented changes to its medical benefits plan for retirees and is in the process of implementing changes to the medical benefits plan for active employees. These changes are expected to generate savings of approximately $14mm per year beginning in 2017.

2. Retirement system savings

In 2017, PREPA expects to continue to fund pension obligations at similar levels to 2015 and 2016 which is a reduction of approximately $40mm versus 2014. A comprehensive review of PREPA’s pension obligations is expected to lead to increased contributions beginning in 2018.

3. HC reduction

There are currently 1,050 employees eligible for retirement. In order to generate $40mm of annual savings, 640 employees would have to retire and not be backfilled (out of the 1,050 stated above). Based on current trends - between February 2015 and February 2016 head count was reduced by 420 – it is expected that headcount will decrease by approximately 600 in addition to the reduction projected in the salaries and benefits calculations in the revenue requirement model.

VII. Working Capital

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The level of working capital in the revenue requirement is assumed to be zero for the Rate Effective Year 2017. A detailed study on working capital will be performed and future adjustments to working capital are envisioned to be included in the revenue requirement. For the evaluation of revenue requirement under a rate base/rate of return approach, our model assumes and industry convention of 45 days on average, or 12.5% of non-fuel operations and maintenance expenses.

VIII. Capital Expenditure

The estimates for capital expenditure were developed by PREPA Planning and Research for PREPA’s Capital Improvement Program. These amounts included both capital intended for replacement and upgrades of existing plant (maintenance capex) and investment in new transmission, distribution, and other projects (investment capex) intended to meet load or system configuration enhancements.

A. Maintenance

PREPA’s maintenance capex program is intended to improve and repair PREPA’s existing infrastructure assets to maintain grid reliability and service.

B. Investment

Projects identified as “investment” capex are needed to bring PREPA into compliance with environmental standards, increase PREPA’s reliability and grid resilience, as well as reduce overall costs of fuel and purchased power.

1. AOGP

Investment in AOGP is a key component of PREPA’s Capital Improvement Program. The gas port will provide the island of Puerto Rico with increased access to abundant and affordable natural gas from continental North America, with lower CO2 emissions and will help decouple PREPA’s rates from historically volatile oil prices (and reduce oil barge traffic).

2. New Units / Repowering / Conversion

Investment in new units is intended to meet environmental compliance requirements and replace aging units. The IRP’s Action Plan as to new units for the first 5 years focuses in particular upon federal Mercury and Air Toxics Standards compliance and unit conversions and repowering as well as new generation as part of that compliance, along with certain retirements.

3. T&D Investment

Investment in new T&D projects is required to stabilize the system as units in the North are retired. In addition, investments are needed to restore the grid and improve and maintain reliability and to enable increased integration of renewables and distributed generation. A large majority of the transmission expenditures discussed in the IRP are for reliability and integration, not new units.

IX. Debt Service

As of May 18th, 2016, PREPA’s debt balance consisted of approximately $8,108 million of bonded debt, $696 million of working capital fuel line loans (the “Fuel Lines”) and a $35 million line of credit from the Government Development Bank for Puerto Rico (“GDB LOC”). Of the approximately $8,108 million in bonded debt, $5,694 million is uninsured and $2,414 is insured by Assured Guaranty Corporation and Assured Guaranty Municipal Corporation (collectively, “Assured”), National Public Finance Guarantee Corporation (“National”) and Syncora Guarantee Inc. (“Syncora”). On May 19th, 2016, PREPA completed the issuance of a Series 2016A that provided proceeds of approximately $56 million, which increased PREPA’s bonded debt balance to $8,164.

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On December 23, 2015, PREPA entered into a Restructuring Support Agreement (“RSA”) with (i) a group of uninsured forbearing bondholders holding approximately $3.2 billion of power revenue bonds (the “Ad Hoc Group”), (ii) Assured and National, who collectively insure approximately $2.2 billion of bonds, and (iii) the Fuel Line and GDB LOC lenders.

Broadly, the RSA contemplates an exchange and tender of uninsured bonds into new securitization bonds to be issued by a special purpose vehicle (“SPV”) that will have an adjustable securitization charge to be paid by the PREPA rate payers.

Specifically, under the terms of the RSA, the Ad Hoc Group of forbearing bondholders have agreed to exchange their existing power revenue bonds into new securitization bonds at an exchange ratio of 85%. The bondholders will have the option to receive securitization bonds that will pay cash interest (“Current Interest Bonds” or “CIBs”) or securitization bonds that will accrete interest for the first five years and pay current interest in cash thereafter (“Convertible Capital Appreciation Bonds” or CCABs”). It is currently estimated that approximately $1.4 billion of Ad Hoc Group holders will elect to receive CCABs. All securitization bonds will have a five year principal holiday and begin amortizing in the sixth year after the transaction date. The securitization bonds will have a final maturity in the 25th year after the transaction. The interest rates on the securitization bonds will be determined according to a scale as defined in the RSA, which stipulates various interest rates for both Current Interest Bonds and Convertible Capital Appreciation Bonds across a number of credit ratings. The “Restructuring” scenario provided in the PREPA rate case assumes that the CIBs have an interest rate of 4.75% and the CCABs have an interest rate of 5.50%.

Pursuant to the RSA, non-forbearing uninsured bondholders will be able to participate in either (i) the exchange transaction offered to the Ad Hoc Group on the same terms or a (ii) a cash tender offer financed by the proceeds of new securitization bonds. Per the RSA, no more than $700 million of the uninsured revenue bonds may remain outstanding after the completion of the transaction. Further, under the legislation enabling the creation of the securitization bonds, the transaction must achieve $725 million of PV savings. These two provisions will provide guides for the amount and pricing of the new securitization bonds issued to finance a tender, and the price at which the existing non-forbearing uninsured bonds can be tendered.

The transaction contemplates a debt service reserve fund (“DSRF”) to support the securitization bonds. The DSRF is designed to enhance the credit profile of the securitization bonds, improving the ability to achieve an investment grade rating. Assured and National (together, the “Monolines”) have agreed to provide a surety policy in an initial amount of more than $430 million that would be used to fund DSRF upon closing of the restructuring transaction. PREPA has also agreed to fund the remaining portion of the DSRF on a first loss basis, which is currently estimated to be approximately $80 million.

In exchange for providing the surety, the Monolines’ existing insured bonds will be economically defeased with new securitization bonds called “Mirror Bonds,” a class of securitization bonds of the same principal amounts with the same interest rates and amortization profiles as the Monolines’ currently outstanding insured power revenue bonds. PREPA also retains the option to call or tender for certain insured bonds after the initial closing of the transaction.

The SPV will replace the surety policy with cash over a nine-year period beginning in the third year following the transaction; however, if PREPA completes a call or tender for certain insured debt within three years of the initial closing of the transaction, the SPV will replace the surety over 7 years beginning in the seventh year after the transaction.

The SPV will also need to issue approximately $95 million of new money securitization bonds to replace $50 million of the Self-Insurance Fund (“SIF”) and to cover certain costs of issuance.

PREPA is currently negotiating with the last remaining insurer, Syncora, which has insured approximately $197 million in principal (and associated interest payments), in order to reach a consensual deal that will

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allow Syncora to enter into the RSA. While PREPA and Syncora are working in good faith toward an agreement that benefits both parties, it is possible that a deal may not be reached. As such, the PREPA rate case assumes that the Syncora bonds remain as legacy bonds at PREPA.

The Fuel Line and GDB LOC lenders have the option to either (i) amortize their debt over six years and pay interest at a rate of 5.75%, or (ii) convert their claims into securitization bonds on the same terms as the Ad Hoc Group. The PREPA rate case assumes that the Fuel Line and GDB LOC lenders will opt for the former treatment, which would leave their restructured claims at PREPA.

In addition to the terms described above, the Ad Hoc Group and Monolines have committed to purchase approximately $111 million of new PREPA bonds to provide immediate liquidity relief to PREPA and to refund a portion of PREPA’s January 1, 2016 interest obligations (the “Series 2016A&B Bonds”). On May 19th, 2016, approximately $56 million of that commitment was funded and the 2016A bonds were issued. The Series 2016A&B Bonds will earn 10% interest and mature on July 1, 2019. The Series 2016A&B Bonds will either be defeased by Mirror Bonds or converted into securitization bonds (at the election of the purchasers) when the restructuring transaction closes.

The RSA does not stipulate whether or how the July 1, 2016 debt service payment would be made. The July 1, 2016 bond debt service payment (excluding Fuel Lines) totals $419 million, including $224 million of principal and $195 million of interest. Another $13 million of interest is due on the Fuel Lines, bringing the total debt service payment to $432 million. Given the size of this payment and PREPA’s challenged liquidity, if PREPA is going to make this payment, it may need to negotiate a new bond purchase with its creditors, the proceeds of which would be used to fund the payment. Discussions regarding a potential bond purchase to fund the July 1, 2016 payment (“Series 2016C Bonds”) are ongoing. As part of the PREPA rate case, an illustrative refinancing assumption was made that includes a 10% interest rate and a six-year term-out, representing a modified version of the fuel line amortization schedule.

The RSA currently contemplates a June 30, 2016 transaction closing date. The proposed (permanent) PREPA rates assume that the transaction closes on such date, but the filing seeking approval of those rates provides the flexibility to accommodate an extension.

Following the transaction, an estimated $1,595 million of debt is assumed to remain outstanding at PREPA, which includes $696 million and $35 million of Fuel Lines and GDB LOC, respectively, as well as (i) the maximum $700 million of uninsured bonds per the RSA and (ii) $164 million of Syncora bonds following the July 1, 2016 debt service payment.

Debt service on the $700 million of uninsured bonds remaining at PREPA is calculated assuming that a pro rata portion of each series of the approximately $2.4 billion of non-forbearing uninsured bonds outstanding (following the July 1, 2016 debt service payment) remains at PREPA. PREPA’s advisors have calculated principal and interest payments on these bonds on a “CUSIP-by-CUSIP” basis. Interest on the Series UU variable rate bonds was projected using the 3-month LIBOR curve and an “Actual/Actual” day count convention. Estimated subsidies have been netted out of interest for the Series EEE and Series YY Build America Bonds (BABs).

The PREPA rate case also includes sufficient revenues to pay debt service on certain bonds that will be exchanged into or defeased by securitization bonds. PREPA believes that full implementation of the transition charge at the SPV may take a number of months and in the intervening period, it will be necessary to have sufficient revenues available to make debt service payments. Payments that are assumed to be made by PREPA prior to the full implementation of the transition charge include Assured and National Mirror Bond payments and payments on the Series 2016A&B Bonds through and including April 1, 2017. The SPV is assumed to make the July 1, 2017 and future debt service payments on these bonds.

A termination of the RSA would have significant negative ramifications for PREPA. First, the Fuel Lines and GDB LOC would become currently due and payable. Similarly, the Series 2016A&B Bonds also

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become due and payable upon a termination of the RSA. PREPA would be required to fund these and other significant legacy debt service payments or enter into a new restructuring agreement that addresses these large debt service requirements. In addition, upon termination of the RSA, PREPA would need to replace the SIF and replenish its debt service reserves, which would require $450 million.

In order to analyze the merits of the restructuring transaction, PREPA’s advisors have prepared a “no restructuring” scenario for comparison purposes. The “no restructuring” scenario assumes status quo debt service and a $1,808 million financing to address the funding that would be immediately required upon termination of an RSA, as noted above. PREPA’s advisors believe it would be very difficult if not impossible to find funding in the capital markets in such a scenario. PREPA has not undertaken any efforts to seek such a financing. The financing is purely illustrative to show the type of transaction required to avoid missing payments on near-term obligations. The “no restructuring” scenario therefore assumes refinancing at a 12% interest rate (Puerto Rico’s constitutional yield cap), and is shown under 3, 5, and 10-year amortization. The illustrative financing would provide sufficient funds to replace the SIF, replenish PREPA’s debt service reserves, and fund a portion of July 1, 2016 debt service obligations in the absence of any restructuring transactions. The status quo debt service was projected on a CUSIP-by-CUSIP basis for both fixed rate and variable rate bonds. In all likelihood however, if the RSA were terminated, PREPA would not be able to obtain such a financing and would instead need to negotiate a new restructuring transaction with its creditors, the terms of which cannot be known.

Additional details surrounding PREPA and the SPV’s projected debt service can be found in the Corporation’s SPV Petition and subsequent responses to the Energy Commission’s requests for information.

X. Other Income

Other income is comprised of interest income on cash balances, disconnection fees, late fees, and income from sources other than provision of electric service to customers. This income is deducted from revenue requirement as an offset because it is presumed to be collected from customers that the utility serves. The assumption used for other income is an annualized estimate based on current cash balances and fee revenue.

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